Accounts Other Records Under GST Retention Period

Goods and Services Tax (GST) is an indirect tax that replaced various indirect taxes in India. It is a comprehensive tax levied on the manufacture, sale, and consumption of goods and services. GST has brought in a lot of changes in the way businesses operate in India. One of the important aspects of GST compliance is maintaining proper accounts and records. In this article, we will discuss the accounts and other records that businesses need to maintain under GST and the retention period for these records.

Accounts and Records to be Maintained under GST

Every registered person under GST is required to maintain the following accounts and records:

1. Accounts of Receipts and Payments: Every business is required to maintain a record of all the receipts and payments made during the financial year. This record should include details such as the date of receipt or payment, the amount, the name of the supplier or customer, and the mode of payment.

2. Accounts of Sales and Purchases: Every business is required to maintain a record of all the sales and purchases made during the financial year. This record should include details such as the date of the transaction, the name of the supplier or customer, the amount, the rate of tax, and the amount of tax paid or payable.

3. Input Tax Credit Records: Every business is required to maintain a record of all the input tax credit availed during the financial year. This record should include details such as the date of the transaction, the name of the supplier, the amount of input tax credit availed, and the amount of tax paid or payable.

4. Output Tax Liability Records: Every business is required to maintain a record of all the output tax liability during the financial year. This record should include details such as the date of the transaction, the name of the customer, the amount of tax payable, and the amount of tax paid.

5. Stock Register: Every business is required to maintain a record of all the goods held in stock. This record should include details such as the description of the goods, the quantity held in stock, the value of the goods, and the rate of tax applicable.

6. Invoices: Every business is required to maintain a record of all the invoices issued and received during the financial year. This record should include details such as the date of the invoice, the name of the customer or supplier, the amount, the rate of tax, and the amount of tax paid or payable.

Retention Period for Accounts and Records

Every registered person under GST is required to maintain the accounts and records mentioned above for a certain period. The retention period for these accounts and records is as follows:

1. Accounts of Receipts and Payments, Accounts of Sales and Purchases, Input Tax Credit Records, and Output Tax Liability Records: These records need to be maintained for a period of 6 years from the end of the financial year to which they pertain.

2. Stock Register: This record needs to be maintained for a period of 8 years from the end of the financial year to which it pertains.

3. Invoices: These records need to be maintained for a period of 6 years from the end of the financial year to which they pertain.

Conclusion

GST has brought in a lot of changes in the way businesses operate in India. Maintaining proper accounts and records is one of the important aspects of GST compliance. Every registered person under GST is required to maintain the accounts and records mentioned above for a certain period. It is important for businesses to ensure that they maintain these records in a proper manner and for the required retention period. This will help them avoid any penalty or legal action in case of any discrepancy or non-compliance.