Accounts and Other Records

Every registered person is required to maintain all records at his principal place of business.

Who must maintain accounts under GST?

It is the responsibility of the persons to maintain specified records-

The owner

The operator of warehouse or godown or any other place used for storage of goods

Every transporter

Every registered person whose turnover during a financial year exceeds 2 crores will get his accounts audited by a chartered accountant or a cost accountant.

What records must be maintained under GST?

Every registered person must maintain records of:

  • Production or manufacture of goods
  • Inward and outward supply of goods or services or both
  • Stock of goods
  • ITC (Input tax credit) availed
  • Output tax paid or payable and 
  • Other details as may be prescribed

What are the accounts which must be maintained under GST?

For example, a trader has to maintain the following a/cs 

  • Input CGST a/c
  • Output CGST a/c
  • Input SGST a/c
  • Output SGST a/c
  • Input IGST a/c
  • Output IGST a/c
  • ECL (Electronic Cash Ledger to be maintained on Government GST portal to pay GST)

Electronic Cash and Credit Ledger

Every registered taxpayer will have three ledgers under GST which will be formed automatically at the time of registration and will be maintained electronically.

Electronic Cash Ledger- This ledger will help as an electronic wallet.  The taxpayer will have to deposit money into his cash ledger. The money will be utilized to make the payment.

Electronic Credit Ledger- The ITC (input tax credit) on purchases will be reflected here under three categories i.e IGST, CGST & SGST. The taxpayer will be able to utilize the balance shown in this account only for the payment of tax.

E-Liability Ledger: This ledger will show the total liability of a taxpayer after net off for the particular month. This ledger will be auto-populated.

Period for Retention of Accounts under GST

Every registered taxable person must maintain the accounts books and records for at least 6 years. The period will be counted from the date of filing of Annual Return for that year.

The last date of filing the Annual return – 31st December of the following year.

Consequences of Not Maintaining Proper Records

If the taxpayer fails to maintain proper records in respect of goods or services, then the proper officer shall treat such unaccounted goods/services as if the taxpayer had supplied them. The officer will ascertain the tax liability on such unaccounted goods.

The taxable person will be required to pay the tax liability calculated along with a penalty.

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