Requirements as to account and book keeping (Section 53)
- Accounts shall be maintained by every registered taxable person.
- All accounts shall be maintained at the principle place of business as mentioned in certificate of registration.
- Where more than one place of business specified in the certificate of registration – The account related to each place of business shall be kept at such place of business concerned
- Accounts shall show true and correct position of business.
- Accounts shall be kept in such a manner as to assess following information:
- Production or manufacture of goods
- Inward or outward supply of goods and/or services
- Stock of goods
- Input tax credit availed
- Output tax paid and payable
- Such other particulars as may be prescribed.
- Account and other particulars may be kept in electronic form.
- Every registered taxable person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant.
- Copy of annual audited accounts and reconciliation statement prepare in the manner specified in section 39 shall be submitted to proper officer.
- Where a taxable person fails to account for the goods and / or services – the proper officer shall determined tax payable on such goods as if such goods are supplied by such registered taxable person.
- Account shall be retained for a period of 60 month from the due date of filling of annual return. (Sec 54).
Electronic Ledgers or E-Ledgers are statements of cash and input tax credit in respect of each registered
taxpayer. In addition, each taxpayer shall also have an electronic tax liability register. Once a taxpayer is registered on Common Portal (GSTN), 2 e-ledgers (Cash & Input Tax Credit) and an electronic tax liability register will be automatically opened and displayed on his dashboard at all times.
Tax Liability Register
Tax Liability Register will reflect the total tax liability of a taxpayer (after netting) for the particular month.
The cash ledger will reflect all deposits made in cash, and TDS/TCS made on account of the taxpayer. The information will be reflected on real time basis. This ledger can be used for making any payment on account of GST.
Input tax credit ledger
Input Tax Credit as self-assessed in monthly returns will be reflected in the ITC Ledger. The credit in this ledger can be used to make payment of TAX ONLY and not other amounts such as interest, penalty, fees etc.