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Period of retention of accounts under GST

Every registered person is required to keep and maintain books of account or other records as prescribed under Section 35(1) and retain them until the expiry of 72 months from the due date for filing of Annual Return for the year pertaining to such accounts and records.

Example: Accounts of F.Y 2017-18 is to be kept till 31st March 2025.

Time period prescribed for maintenance of accounts and records if the registered person is a party to an appeal or revision

A registered person, who is a party to an appeal or revision or any other proceeding before any Appellate Authority or Tribunal or Court, or investigation for an offence under Chapter XIX, shall retain the books of account pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or until the expiry of 72 months from the due date of filing of Annual Return for the year pertaining to such accounts and records, whichever is later.

Applicable Accounting Standard or Guidance note for maintenance of Accounts under GST

There is no specific Accounting Standard prescribed for accounting under the GST Regime. Respective Accounting Standards followed in previous regime will continue to be followed for the purpose of accounting under the GST Regime

Maintenance of Inventory Records under GST

Every Registered person is required to maintain inventory records in accordance with Section 35 of the CGST Act read with Rule 56 of the CGST Rules. Only accounting for the inventory is not sufficient in the absence of inventory records.

Treatment of Ineligible ITC and RCM

In cases where the credit either on account of payment made under forward charge or on account of payment made under Reverse charge is identified as ineligible at the time of initial recording of transaction only, the same should be debited to the respective expenses account. However, in case the proportionate credit is disallowed at a later stage for Eg: u/r 42 or 43, the same should be booked as a separate expense as it will not be possible to allocate them to respective expenses head at that stage.

Who is responsible to maintain accounts related to job works

The responsibility for the maintenance of proper accounts of job work-related inputs and capital goods rests with the principal.

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