CHAPTER 20

 

Basic procedures in GST

 

Basic procedures are:

  • Registration with GST which is common for SGST/UTGST, CGST and IGST.
  • Electronic payment of taxes.
  • Filing of returns which are common for SGST/UTGST, CGST and IGST.
  • No statutory records or registers have been specified in GST Act. Normal records of taxable person, giving required details are sufficient.
  • Self assessment – Assessment under GST is basically a self-assessment. However, there are provisions for audit, inspection, visits, etc. Tax liability can arise during such procedures.
  • Separate GST registration means distinct and separate taxable person, even if PAN is same.
  • Establishment in another State is distinct person even if not registered under GST.
  • Persons with small turnover are not taxable persons.

 

Accounts and other records

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 and manufacture of goods
  • Inward and outward supply of goods or services
  • Stock of goods
  • Input tax credit availed
  • Output tax payable and paid
  • Such other particulars as may be prescribed
  • Records in electronic form are permitted
  • Additional records to a class of taxable persons may be prescribed by specific notification
  • Relaxation in maintaining records may be prescribed for a class of taxable persons by specific notification
  • Every registered person is required to keep accounting records up to 72 months (6 years) from the due date of filing annual return for a particular year

 

Inventory records by unregistered person

Every owner /operator of a warehouse or godown or any other place used for storage of goods irrespective of whether he is a registered person or not shall maintain records of consignor, consignee and other relevant details of the goods as may be prescribed.

 

Audit by CA/Cost Accountant

Every registered person whose turnover during a financial year exceeds the prescribed limit of ₹2 crore shall get his accounts audited and shall submit a copy of the audited annual accounts, the reconciliation statement and such other documents in such form and manner as may be prescribed, furnish a copy of audited duly certified FORM GSTR-9C.