Section 42
and 43 of Model GST Law deal with
maintenance and keeping of accounts and records, these are important section to
know that what now Govt. wants from a business man with respect to book
keeping.
This
article will help you to clear your question w.r.t Accounts and Records under Model GST Law
Section 42-Accounts and other
records
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Interpretation
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(1) Every registered person shall
keep and maintain, at his principal place of business, as mentioned in the
certificate of registration, a true and correct account of production or
manufacture of goods, of inward or outward supply of goods and/or services,
of stock of goods, of input tax credit availed, of output tax payable and
paid, and such other particulars as may be prescribed in this behalf:
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Who- The every person who get himself
registered under MGL,
What-
True and Correct Account of
I.
Production or manufacture of Goods
×
II.
inward or outward supply of goods and/or services
III.
stock of goods
IV.
input tax credit availed
V.
output tax payable and paid
VI. such
other particulars as may be prescribed
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Provided that where more than one
place of business is specified in the certificate of registration, the
accounts relating to each place of business shall be kept at such places of
business concerned
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Where- this records shall be kept at
place of business
But if
Registered Person (RP) has more than one place of business then accounts
relates to each place of business shall be kept at same place of business
only.
Example-
A is registered under Delhi and having four place of business in Delhi
itself. Then he will maintain accounts for all four such place at these place
only.
The
purpose of inclusion of such requirement if only better control by Govt.
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Provided further that the
registered person may keep and maintain such accounts and other particulars
in the electronic form in the manner as may be prescribed.
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How- such Account and Records shall be
maintained in Electronically only. It means records shall be made in computer
only. Manual book keeping is not allowed.
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(2) The [Commissioner/Chief
Commissioner] may notify a class of taxable persons to maintain additional
accounts or documents for such purpose as may be specified
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It means that the above list of
records are not exhaustive, the commissioner or Chief Commissioner may add
some more records to be maintained.
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(3) Where the [Commissioner/ Chief
Commissioner] considers that any class of taxable persons is not in a
position to keep and maintain accounts in accordance with the provisions of
this section, he may, for reasons to be recorded in writing, permit such
class of taxable persons to maintain accounts in such manner as may be
prescribed
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This sub-section is added for
those who may not keep records electronically , then they may approach to
Commissioner or Chief Commissioner to permit them for to do so.
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(4) 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 and
shall submit to the proper officer a copy of the audited statement of
accounts, the reconciliation statement under sub-section (2) of section 30
and such other documents in the form and manner as may be prescribed in this
behalf
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Only keeping of Accounts is not
enough, it should be get audited by Chartered or Cost Accountant. And submit
Audit report at the time of filing of Annual Return by end of December
next to closure of Financial Year under Section 30 of MGL.
The
manner and other document to submit shall be prescribed
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Section 43- Period of retention
of accounts
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(1) Every registered taxable
person required to keep and maintain books of account or other records under
sub-section (1) of section 42 shall retain them until the expiry of sixty
months from the last date of filing of Annual Return for the year pertaining
to such accounts and records
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How Long– the Records and Accounts as
specified in section 42 shall be kept for the period of 60 month from the
last date of filing of Annual Return i.e Sept of following year.
Limitation
of 60 days is same as Service Tax and Central Excise i.r 5 Year
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Provided that a taxable person,
who is a party to an appeal or revision or any other proceeding before any
Appellate Authority or Tribunal or Court, whether filed by him or by the
department, shall retain the books of account and other records pertaining to
the subject matter of such appeal or revision or proceeding for a period of
one year after final disposal of such appeal or revision or proceeding, or
for the period specified under sub-section (1), whichever is later.
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However in case where any
appeal/revision/ or any other proceeding made before appellate Authority
/Tribunal of Court then the books of account and other records pertaining to
the subject matter of such appeal or revision or proceeding shall be kept for
a period of one year after final disposal of such appeal or revision or
proceeding, or for the period specified under sub-section (1), whichever is
later
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