Accounts and Records required to be maintained under GST

All You Need to Know

Appraisal in GST is predominantly centered around self-evaluation by the citizens themselves. Each citizen is required to self-survey the charges payable and outfit an arrival for each assessment period i.e. the period for which return is required to be documented. The consistence check is finished by the office through investigation of profits,

review or potentially examination. In this way the consistence confirmation is to be done through narrative checks as opposed to physical controls. This requires certain commitments to be thrown on the citizen for keeping and keeping up records and records.

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Key focuses that are huge from the point of view of upkeep of records and records are:

1. Area 35 of the CGST Act and “Records and Records” Rules (hereinafter alluded to as guidelines) give that each enlisted individual should keep and keep up all records at his primary place of business. It has thrown the duty on the proprietor or administrator of distribution center or godown or some other place utilized for capacity of products and on each transporter to keep up indicated records.

The area likewise enables the Commissioner to advise a class of assessable people to keep up extra records or archives for indicated reason or to keep up accounts in other endorsed way.

It additionally gives that each enlisted individual whose turnover amid a budgetary year surpasses as far as possible should get his records reviewed by a contracted bookkeeper or a cost bookkeeper.

2. Each enlisted individual is required to keep up genuine and revise record of following:

(a) generation or fabricate of products

(b) internal and outward supply of merchandise or benefits or both

(c) load of products

(d) input charge credit profited

(e) yield assess payable and paid and

(f) such different particulars as might be recommended

(g) merchandise or administrations imported or sent out or

(h) supplies drawing in installment of assessment on invert accuse along of the applicable reports, including solicitations, bills of supply, conveyance challans, credit notes, charge notes, receipt vouchers, installment vouchers, discount vouchers and e-way charges

The previously mentioned list is on a full scale level and what should be put away on ground level as a feature of the rundown is given beneath:

(a) records of stock in regard of merchandise got and provided; and such record might contain particulars of the opening equalization, receipt, supply, products lost, stolen, decimated, discounted or discarded by method for blessing or free examples and adjust of stock including crude materials, completed products, scrap and wastage thereof

(b) a different record of advances got, paid and modifications made thereto

(c) a record containing the subtle elements of expense payable, impose gathered and paid, input charge, input assess credit

asserted together with an enlist of duty receipt, credit note, charge note, conveyance challan issued or gotten amid any expense period

(d) names and finish locations of providers from whom merchandise or administrations chargeable to impose under the Act, have been gotten

(e) names and finish delivers of the people to whom supplies have been made

(f) the total locations of the premises where the products are put away including merchandise put away amid travel alongside the particulars of the stock put away in that

(g) month to month generation accounts demonstrating the quantitative points of interest of crude materials or administrations utilized as a part of the make and quantitative subtle elements of the merchandise so made including the waste and by items thereof

(h) accounts demonstrating the quantitative points of interest of merchandise utilized as a part of the arrangement of administrations, subtle elements of info administrations used and the administrations provided

(i) isolate represents works contract appearing:

• the names and addresses of the people for whose benefit the works contract is executed

• portrayal, esteem and amount (wherever pertinent) of products or administrations gotten for the execution of works contract

• portrayal, esteem and amount (wherever material) of products or administrations used in the execution of works contract

• the subtle elements of installment gotten in regard of each works contract and

• the names and addresses of providers from whom he has gotten products or administrations

3. On the off chance that more than one place of business is determined in the testament of enrollment, the records identifying with each place of business should be kept at such places of business. On the off chance that records can be kept up electronically and access to such records is at each place of business, no necessity to keep up printed copy records at each place of business.

4. In the event that records are looked after electronically, following prerequisites have been endorsed:

(an) information so put away should be validated by method for computerized signature

(b) appropriate go down of records

(c) create, on request, the important records or archives, properly validated, in printed version or in any electronically lucid organization

5. Any section in registers, records and archives might not be eradicated, destroyed or overwritten and all wrong passages, other than those of administrative nature, should be scored out under validation and from that point the right passage might be recorded and where the registers and different reports are looked after electronically, a log of each passage altered or erased might be kept up.

Advance every volume of books of record kept up physically by the enrolled individual should be serially numbered

6. Period for safeguarding of records: All records kept up together with all solicitations, bills of supply, credit and charge notes, and conveyance challans identifying with stocks, conveyances, internal supply and outward supply might be saved for a long time from the due date of outfitting of yearly return for the year relating to such records and records.

7. Records to be kept up by proprietor or administrator of godown or distribution center and transporters: The transporters, proprietors or administrators of godowns, if not effectively enlisted under the GST Act(s), might present the insights with respect to their business electronically on the Common Portal in FORM GST ENR-01. A one of a kind enrolment number might be created and conveyed to them. A man in whatever other State or Union region might be regarded to be selected in the State or Union Territory.

A quick guide to India GST rates in 2017

The Goods and Services Tax (GST) has been one of the key things that has caught the attention of the market given its implications on earnings of companies. The government has kept a large number of items under 18% tax slab. The government categorised 1211 items under various tax slabs. Here is a low-down on the tax slab these items would attract:

Here is the complete updated list:

Gold and rough diamonds do not fall under the current rate slab ambit and will be taxed at 3% and 0.25% respectively.

No tax(0%) 

No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Salt – all types, Kajal, Children’s’ picture, drawing or colouring books, Human hair

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Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST. Rough precious and semi-precious stones will attract GST rate of 0.25 per cent.

Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Bio gas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-post marks, first-day coversServices

Transport services (Railways, air transport), small restraurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and note books, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games, like ludo,

State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab

Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, Bidi Patta, Biscuits (All catogories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machinery], Printers [other than multifunction printers], Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and padding pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings.
AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels28%
Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use, will attract 28 % tax – the highest under GST system.

Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST

GST Rates & HSN Codes

gst india
GST council has made the much-awaited announcements around tax rates on various categories of goods on day one of a two-day meeting of the said council at Srinagar. There has been a hype around these rates for a while and now these rates are finally in the public domain.

As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies. Everyone is evaluating their position as a result of this change. So in this article, we bring you our analysis of these GST rates.

We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under:

GST Rates Structure

Tax Rates Products
0% Milk Kajal
Eggs Educations Services
Curd Health Services
Lassi Children’s Drawing & Colouring Books
Unpacked Foodgrains Unbranded Atta
Unpacked Paneer Unbranded Maida
Gur Besan
Unbranded Natural Honey Prasad
Fresh Vegetables Palmyra Jaggery
Salt Phool Bhari Jhadoo
5% Sugar Packed Paneer
Tea Coal
Edible Oils Raisin
Domestic LPG Roasted Coffee Beans
PDS Kerosene Skimmed Milk Powder
Cashew Nuts Footwear (< Rs.500)
Milk Food for Babies Apparels (< Rs.1000)
Fabric Coir Mats, Matting & Floor Covering
Spices Agarbatti
Coal Mishti/Mithai (Indian Sweets)
Life-saving drugs Coffee (except instant)
12% Butter Computers
Ghee Processed food
Almonds Mobiles
Fruit Juice Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly
Packed Coconut Water Umbrella
18% Hair Oil Capital goods
Toothpaste Industrial Intermediaries
Soap Ice-cream
Pasta Toiletries
Corn Flakes Computers
Soups Printers
28% Small cars (+1% or 3% cess) High-end motorcycles (+15% cess)
Consumer durables such as AC and fridge Beedis are NOT included here
Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)

In addition to the above, a few other items were mentioned in the Council’s announcement of rates. These items, and the applicable rates on them are as follows:GST Rates

  • Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!
  • The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.
  • Coal to be taxed at 5 percent against current 11.69 per cent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.
  • Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!
  • The ‘mithai’ from the neighbouring sweet shop might lose some of its flavour as Indian sweets will now be taxable at 5 per cent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.

Plus, it was announced that:

  • for restaurants serving alcohol, the tax bracket will be 18 per cent
  • education, healthcare are going to be exempted from GST
  • services on Non-AC restaurants will be 12 per cent