GST Accounts & Records

Accounts and Other Records

Under GST all indirect taxes (excise, VAT, service tax) will get subsumed into one GST, thus reducing the number of accounts required to be maintained.

Under GST, a trader has to maintain the following a/c s (apart from accounts like 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)

Accounts to Be Maintained Under Goods and Services Tax Law

Account/Records Information Required By Whom?
Register of Goods Produced Account should contain detail of goods manufactured in a factory or production house Every assesse carrying out manufacturing activity
Purchase Register All the purchases made within a tax period for manufacturing of goods or provision of services All Assesse
Sales Register Account of all the sales made within a tax period must be maintained All Assesse
Stock Register This register should contain a correct stock of inventory available at any given point of time All Assesse
Input Tax Credit Availed This register should maintain the details of Input Tax Credit availed for a given tax period All Assesse
Output Tax Liability This register should maintain the details of GST liability outstanding to be adjusted against input credit or paid out directly All Assesse
Output Tax Paid This register should maintain the details of GST paid for a particular tax period All Assesse
Other Records Specified Government can further specify by way of a notification, additional records and accounts to be maintained Specific Businesses as notified by the government


Accounting Under GST

While there will be initial transition challenges, GST will bring in much clarity in many areas of business. One of the areas is accounting and bookkeeping. While the number of accounts is more apparently under GST, once you go through the accounting you will find it is much easier for record keeping. One of the biggest advantages a trader will have is that he can set off his input tax on service with his output tax on the sale.

Electronic Cash & Credit Ledger

Under this section we will discuss the mechanism of GST e-ledger and how does it work. E-ledger or electronic ledger is statement of cash and input tax credit in respect of a registered taxpayer. Once a taxpayer makes GST tax payment by cash, cheque, internet banking, RTGS or NEFT the amount is credited in their respective electronic ledgers namely:

Electronic Cash Ledger

Electronic Credit Ledger

These two e-ledgers are generated once after registering with common portal of GST called GSTN by a taxpayer.

Period for Retention

As per the GST law every registered taxable person required to keep and maintain books of account or other records will maintain the books for at least 60 months, counted from the last date of filing of Annual Return. i.e. Sept of following year.

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