Maintenance of books of Account and Records under GST law

books of accounts under GST

As per Section 36 of the CGST Act, 2017, it is compulsory to maintain books of Account and Records under Goods and Service Tax (GST) law by all registered person.

Books of Accounts refer to the documentation of all the financial data and financial information of the entity. It states financial position of the business. All financial transactions are recorded in it. It is usually maintained at a prescribed place of business as per the different Acts. Generally, it is the responsibility of the owner to record proper information.

 It mainly includes-

  • Journal
  • Ledgers
  • Trading Account
  • Profit and Loss Account
  • Balance Sheet
  • Notes to Accounts
  • Cash flow Statements

Maintenance of BOOKS OF ACCOUNTS provisions are there under-


Who has to maintain books of Account under GST?

It is compulsory for every registered person to maintain the books of accounts under Goods and service Tax Act, 2017.

Read Also: Requirement of GST Registration in India

What books of Accounts are required to maintain under GST Law?

Every registered person must maintain records of-

  • Production or manufacture of goods.
  • Inward and outward supply of goods or services or both
  • Stock of goods
  • Input tax credit availed
  • Output tax payable and paid
  • Records of goods or services imported or exported or
  • Records of supplies attracting payment of tax on reverse charge
  • Other particulars as may be prescribed

Although requirements of books may differ from person to person depending upon the nature of business. Like for example, an agent also needs to maintain authorisation letter received from principal to work on his behalf.

Read Also: GST Input Tax Credit (ITC) Set-off Rules – Simplified with examples

How many years should books of Account under GST Law be maintained?

Books of accounts under GST law should be maintained for 6 years from the last date of filing of the annual return for that year.

Penalty for non-maintenance of books of account under GST Law

In case of non-maintenance of books of accounts under GST, penalty of INR 25,000 will be charged.

Read more:

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The author of the above article is Aditya Kishore.

Disclaimer:The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon. 
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