GST: Freedom from maintaining too many records

GST updates

 

New GST regime gives Freedom from maintaining too many Accounts and Records. Under GST, One Accounts and Records is enough.

Unique features of GST related to Accounts and Records to be maintained are as follows :-

1. Compliance verification in GST will be done through examination of accounts and records maintained, only if required.

2. One tax, one type of record: No need to maintain separate records for different type of taxes as in the era of VAT, Excise and Service Tax.

3. There will be freedom to choose the format of the accounts & records, and only information needed is prescribed. The records can take the form of paper-based source documents including computer printouts or digital records.

4. The required records are:‑

a)   All records of goods and services that a person supplies or receives in the course of his business;

b)   All records of goods imported; and

c) Any other supporting documents such as contracts and price quotation to show his liability to GST.

5. Digital GST: Records can be maintained in electronic format as well.

6. Where a certain class of taxable persons cannot keep and maintain records as prescribed, the Commissioner may permit them to maintain records otherwise as prescribed.

7. Taxable persons with turnover of less than 2 crores are not required to get their accounts audited or submit reconciliation statement with annual returns.

8. Simple records to be kept by agents, transporters and warehouse keepers:

Agents: A person working as an agent is required to maintain records depicting the description, value and quantity (wherever applicable) of goods or services received or supplied on behalf of principal, and details of accounts furnished to every principal.

Transporters: A person engaged in the business of transporting goods is required to maintain simple records of goods transported & delivered, and goods stored in transit by him.

Warehouse keepers: A person operating a warehouse or godown is required to keep records with respect to the dispatch, movement, receipt, disposal and period for which the goods remain in the warehouse or godown.

Source – Taxguru

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