Every registered taxpayer dealing under GST must maintain all the financial record at his workplace.

Who must maintain accounts under GST? 

Following people must maintain all the accounts under GST:

  • Owner
  • Transporter
  • Operator of warehouse or godown or any other place used for the storage of goods.

An account audit is also compulsory for the registered person whose turnover is exceeding the limit (2 crore) in a particular financial year by a chartered accountant or a cost accountant.

What records must be maintained under GST?

Every registered dealer must maintain the following records:

  • Purchase register
  • Sales register
  • Stock register
  • Input tax credit availed
  • Output tax liability 
  • Output tax paid
  • Other particulars as prescribed

What are the accounts which must be maintained under GST?

Following accounts must be maintained under GST regime (Apart from purchase, sales & stock):

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

Accounting entries under GST

It is much easier to keep a record and make accounting entries under GST. The biggest advantage of GST to a business owner they can save tax by offsetting of input tax on service with output tax on sales.

Electronic cash ledger

Electronic cash ledger has been introduced by GST. These 3 ledgers are generated automatically once you register for GST on the Government portal. All these ledgers will be maintained electronically. The types of ledgers are:

  1. Electronic Cash Ledger - Just like any another e-wallet that can be used to make a payment for a tax, interest and penalties. Taxpayer can simply add a money to recharge the wallet.
  2. E-liability ledger - The total liability owned by a tax payer for any given  particular month. Taxpayer can see this ledger on the GST dashboard.
  3. E-Credit Ledger - This ledger consists input tax credit fetched from the taxpayer's monthly return. Taxpayer cannot use this amount for any other purpose and can only be used to pay tax. This tax credit would be of three types i.e. CGST, SGST & IGST.

Retention period

Every registered taxpayer person under GST act must maintain their account books and record at-least for 72 months from the date for filing annual return that year.   

Want to manage your accounting books & record on cloud?

Did this answer your question?