ICAI Notes: Accounts and Records | Taxation for CA Intermediate PDF Download

 Page 1


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a
a
CHAPTER 
11 
 
LEARNING OUTCOMES 
 
 
 
ACCOUNTS AND 
RECORDS
 
The section numbers referred to in the Chapter pertain to CGST Act, 2017, unless 
otherwise specified. Examples/Illustrations/Questions and Answers given in the 
Chapter are based on the position of GST law existing as on 30.04.2023. 
 
  
 
After reading this chapter, you shall be equipped to: 
? enumerate the accounts and other records required to be 
maintained under GST by registered person. 
? list the additional records required to be maintained by 
agent, manufacturer, service provider. 
? describe the accounts and records to be maintained by 
person executing works contract, clearing and forwarding 
agent. 
? Enumerate the accounts and records to be maintained by 
owner/operator of a warehouse/godown and transporter. 
? describe the period for which the books of accounts or 
other records are required to be maintained. 
© The Institute of Chartered Accountants of India
Page 2


a
a
a
CHAPTER 
11 
 
LEARNING OUTCOMES 
 
 
 
ACCOUNTS AND 
RECORDS
 
The section numbers referred to in the Chapter pertain to CGST Act, 2017, unless 
otherwise specified. Examples/Illustrations/Questions and Answers given in the 
Chapter are based on the position of GST law existing as on 30.04.2023. 
 
  
 
After reading this chapter, you shall be equipped to: 
? enumerate the accounts and other records required to be 
maintained under GST by registered person. 
? list the additional records required to be maintained by 
agent, manufacturer, service provider. 
? describe the accounts and records to be maintained by 
person executing works contract, clearing and forwarding 
agent. 
? Enumerate the accounts and records to be maintained by 
owner/operator of a warehouse/godown and transporter. 
? describe the period for which the books of accounts or 
other records are required to be maintained. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.2 
 
 
 
 
1. INTRODUCTION 
Assessment in GST is mainly focused on self-assessment by the taxpayers 
themselves. Every taxpayer is required to self-assess the taxes payable and furnish 
a return for each tax period i.e. the period for which return is required to be filed.  
The compliance verification is done by the 
Department through scrutiny of returns and/or 
investigation. Thus, the compliance verification is 
to be done through documentary checks rather 
than physical controls. This requires certain 
obligations to be cast on the taxpayer for keeping 
and maintaining accounts and records. Such 
accounts and records may be used by the department for compliance verification.  
Every registered person shall keep and maintain all records at his principal place 
of business. Responsibility has been casted on the owner or operator of 
warehouse or godown or any other place used for storage of goods and on every 
transporter to maintain specified records even if they are not registered under 
GST.  They need not enroll for this purpose.  
 
Accounts & Records
Persons required to maintain books of accounts.
Records to be maintained by manufacturer, agent, service provider, 
transporter etc
Manner of maintaining accounts & records
Failure to maintain the accounts
Period of retention of accounts
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
Page 3


a
a
a
CHAPTER 
11 
 
LEARNING OUTCOMES 
 
 
 
ACCOUNTS AND 
RECORDS
 
The section numbers referred to in the Chapter pertain to CGST Act, 2017, unless 
otherwise specified. Examples/Illustrations/Questions and Answers given in the 
Chapter are based on the position of GST law existing as on 30.04.2023. 
 
  
 
After reading this chapter, you shall be equipped to: 
? enumerate the accounts and other records required to be 
maintained under GST by registered person. 
? list the additional records required to be maintained by 
agent, manufacturer, service provider. 
? describe the accounts and records to be maintained by 
person executing works contract, clearing and forwarding 
agent. 
? Enumerate the accounts and records to be maintained by 
owner/operator of a warehouse/godown and transporter. 
? describe the period for which the books of accounts or 
other records are required to be maintained. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.2 
 
 
 
 
1. INTRODUCTION 
Assessment in GST is mainly focused on self-assessment by the taxpayers 
themselves. Every taxpayer is required to self-assess the taxes payable and furnish 
a return for each tax period i.e. the period for which return is required to be filed.  
The compliance verification is done by the 
Department through scrutiny of returns and/or 
investigation. Thus, the compliance verification is 
to be done through documentary checks rather 
than physical controls. This requires certain 
obligations to be cast on the taxpayer for keeping 
and maintaining accounts and records. Such 
accounts and records may be used by the department for compliance verification.  
Every registered person shall keep and maintain all records at his principal place 
of business. Responsibility has been casted on the owner or operator of 
warehouse or godown or any other place used for storage of goods and on every 
transporter to maintain specified records even if they are not registered under 
GST.  They need not enroll for this purpose.  
 
Accounts & Records
Persons required to maintain books of accounts.
Records to be maintained by manufacturer, agent, service provider, 
transporter etc
Manner of maintaining accounts & records
Failure to maintain the accounts
Period of retention of accounts
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
ACCOUNTS AND RECORDS 
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a
11.3 
Further, Commissioner is empowered to notify a class of 
taxable persons to maintain additional accounts or 
documents for specified purpose or to maintain accounts 
in other prescribed manner.  Similarly, the Commissioner 
can permit a class of taxable persons to maintain accounts 
in such manner as may be prescribed if that class of taxable person is not in a 
position to keep and maintain accounts in accordance with the provisions of GST 
Laws.   
It is not mandatory to maintain the accounts in electronic form. Accounts and 
records may be maintained either electronically or manually. Further, there is no 
prescribed format for maintaining the accounts.   
Chapter VIII – Accounts and Records 
[Sections 35 and 36] of the CGST Act and 
Chapter VII – Accounts and Records 
[Rules 56 to 58] of the CGST Rules, 2017, 
enumerates the accounts and records 
required to be maintained by a taxpayer 
and the period for which such accounts 
and records are required to be 
preserved. State GST laws also prescribe identical provisions in relation to 
accounts and records. 
Before proceeding to understand the accounts and records provisions, let us first 
go through few relevant definitions. 
2. RELEVANT DEFINITIONS 
? Agent: means a person, including a factor, broker, commission agent, 
arhatia, del credere agent, an auctioneer or any other mercantile agent, by 
whatever name called, who carried on the business of supply or receipt of 
goods or services or both on behalf of another [Section 2(5)]. 
Provisions relating to Accounts and Records under CGST Act have also been 
made applicable to IGST Act vide section 20 of the IGST Act. 
© The Institute of Chartered Accountants of India
Page 4


a
a
a
CHAPTER 
11 
 
LEARNING OUTCOMES 
 
 
 
ACCOUNTS AND 
RECORDS
 
The section numbers referred to in the Chapter pertain to CGST Act, 2017, unless 
otherwise specified. Examples/Illustrations/Questions and Answers given in the 
Chapter are based on the position of GST law existing as on 30.04.2023. 
 
  
 
After reading this chapter, you shall be equipped to: 
? enumerate the accounts and other records required to be 
maintained under GST by registered person. 
? list the additional records required to be maintained by 
agent, manufacturer, service provider. 
? describe the accounts and records to be maintained by 
person executing works contract, clearing and forwarding 
agent. 
? Enumerate the accounts and records to be maintained by 
owner/operator of a warehouse/godown and transporter. 
? describe the period for which the books of accounts or 
other records are required to be maintained. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.2 
 
 
 
 
1. INTRODUCTION 
Assessment in GST is mainly focused on self-assessment by the taxpayers 
themselves. Every taxpayer is required to self-assess the taxes payable and furnish 
a return for each tax period i.e. the period for which return is required to be filed.  
The compliance verification is done by the 
Department through scrutiny of returns and/or 
investigation. Thus, the compliance verification is 
to be done through documentary checks rather 
than physical controls. This requires certain 
obligations to be cast on the taxpayer for keeping 
and maintaining accounts and records. Such 
accounts and records may be used by the department for compliance verification.  
Every registered person shall keep and maintain all records at his principal place 
of business. Responsibility has been casted on the owner or operator of 
warehouse or godown or any other place used for storage of goods and on every 
transporter to maintain specified records even if they are not registered under 
GST.  They need not enroll for this purpose.  
 
Accounts & Records
Persons required to maintain books of accounts.
Records to be maintained by manufacturer, agent, service provider, 
transporter etc
Manner of maintaining accounts & records
Failure to maintain the accounts
Period of retention of accounts
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
ACCOUNTS AND RECORDS 
a
a
11.3 
Further, Commissioner is empowered to notify a class of 
taxable persons to maintain additional accounts or 
documents for specified purpose or to maintain accounts 
in other prescribed manner.  Similarly, the Commissioner 
can permit a class of taxable persons to maintain accounts 
in such manner as may be prescribed if that class of taxable person is not in a 
position to keep and maintain accounts in accordance with the provisions of GST 
Laws.   
It is not mandatory to maintain the accounts in electronic form. Accounts and 
records may be maintained either electronically or manually. Further, there is no 
prescribed format for maintaining the accounts.   
Chapter VIII – Accounts and Records 
[Sections 35 and 36] of the CGST Act and 
Chapter VII – Accounts and Records 
[Rules 56 to 58] of the CGST Rules, 2017, 
enumerates the accounts and records 
required to be maintained by a taxpayer 
and the period for which such accounts 
and records are required to be 
preserved. State GST laws also prescribe identical provisions in relation to 
accounts and records. 
Before proceeding to understand the accounts and records provisions, let us first 
go through few relevant definitions. 
2. RELEVANT DEFINITIONS 
? Agent: means a person, including a factor, broker, commission agent, 
arhatia, del credere agent, an auctioneer or any other mercantile agent, by 
whatever name called, who carried on the business of supply or receipt of 
goods or services or both on behalf of another [Section 2(5)]. 
Provisions relating to Accounts and Records under CGST Act have also been 
made applicable to IGST Act vide section 20 of the IGST Act. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.4 
? Commissioner: means the Commissioner of central tax and includes the 
Principal Commissioner of central tax appointed under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods 
and Services Tax Act. [Section 2(24)] 
? Common portal: means the common goods and services tax electronic 
portal referred to in section 146 [Section 2(26)]. 
? Invoice or Tax invoice: means the tax invoice referred to in section 31. 
[Section 2(66)] 
? Manufacture: means processing of raw material or inputs in any manner 
that results in emergence of a new product having a distinct name, 
character and use and the term "manufacturer" shall be construed 
accordingly. [Section 2(72)] 
? Taxable supply: means a supply of goods or services or both which is 
leviable to tax under this Act [Section 2(108)]. 
? Place of business: includes [Section 2(85)]: 
 
? Taxable person: means a person who is registered or liable to be 
registered under section 22 or section 24 [Section 2(107)]. 
? Principal place of business: means the place of business specified as 
the principal place of business in the certificate of registration [Section 
2(89)]. 
? Proper officer: in relation to any function to be performed under this 
Act, means the Commissioner or the officer of the central tax who is 
assigned that function by the Commissioner in the Board [Section 2(91)]. 
a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores
his goods, supplies or receives goods or services or both; or
a place where a taxable person maintains his books of account; or
a place where a taxable person is engaged in business through an
agent, by whatever name called.
© The Institute of Chartered Accountants of India
Page 5


a
a
a
CHAPTER 
11 
 
LEARNING OUTCOMES 
 
 
 
ACCOUNTS AND 
RECORDS
 
The section numbers referred to in the Chapter pertain to CGST Act, 2017, unless 
otherwise specified. Examples/Illustrations/Questions and Answers given in the 
Chapter are based on the position of GST law existing as on 30.04.2023. 
 
  
 
After reading this chapter, you shall be equipped to: 
? enumerate the accounts and other records required to be 
maintained under GST by registered person. 
? list the additional records required to be maintained by 
agent, manufacturer, service provider. 
? describe the accounts and records to be maintained by 
person executing works contract, clearing and forwarding 
agent. 
? Enumerate the accounts and records to be maintained by 
owner/operator of a warehouse/godown and transporter. 
? describe the period for which the books of accounts or 
other records are required to be maintained. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.2 
 
 
 
 
1. INTRODUCTION 
Assessment in GST is mainly focused on self-assessment by the taxpayers 
themselves. Every taxpayer is required to self-assess the taxes payable and furnish 
a return for each tax period i.e. the period for which return is required to be filed.  
The compliance verification is done by the 
Department through scrutiny of returns and/or 
investigation. Thus, the compliance verification is 
to be done through documentary checks rather 
than physical controls. This requires certain 
obligations to be cast on the taxpayer for keeping 
and maintaining accounts and records. Such 
accounts and records may be used by the department for compliance verification.  
Every registered person shall keep and maintain all records at his principal place 
of business. Responsibility has been casted on the owner or operator of 
warehouse or godown or any other place used for storage of goods and on every 
transporter to maintain specified records even if they are not registered under 
GST.  They need not enroll for this purpose.  
 
Accounts & Records
Persons required to maintain books of accounts.
Records to be maintained by manufacturer, agent, service provider, 
transporter etc
Manner of maintaining accounts & records
Failure to maintain the accounts
Period of retention of accounts
CHAPTER OVERVIEW 
© The Institute of Chartered Accountants of India
 
ACCOUNTS AND RECORDS 
a
a
11.3 
Further, Commissioner is empowered to notify a class of 
taxable persons to maintain additional accounts or 
documents for specified purpose or to maintain accounts 
in other prescribed manner.  Similarly, the Commissioner 
can permit a class of taxable persons to maintain accounts 
in such manner as may be prescribed if that class of taxable person is not in a 
position to keep and maintain accounts in accordance with the provisions of GST 
Laws.   
It is not mandatory to maintain the accounts in electronic form. Accounts and 
records may be maintained either electronically or manually. Further, there is no 
prescribed format for maintaining the accounts.   
Chapter VIII – Accounts and Records 
[Sections 35 and 36] of the CGST Act and 
Chapter VII – Accounts and Records 
[Rules 56 to 58] of the CGST Rules, 2017, 
enumerates the accounts and records 
required to be maintained by a taxpayer 
and the period for which such accounts 
and records are required to be 
preserved. State GST laws also prescribe identical provisions in relation to 
accounts and records. 
Before proceeding to understand the accounts and records provisions, let us first 
go through few relevant definitions. 
2. RELEVANT DEFINITIONS 
? Agent: means a person, including a factor, broker, commission agent, 
arhatia, del credere agent, an auctioneer or any other mercantile agent, by 
whatever name called, who carried on the business of supply or receipt of 
goods or services or both on behalf of another [Section 2(5)]. 
Provisions relating to Accounts and Records under CGST Act have also been 
made applicable to IGST Act vide section 20 of the IGST Act. 
© The Institute of Chartered Accountants of India
GOODS AND SERVICES TAX a 11.4 
? Commissioner: means the Commissioner of central tax and includes the 
Principal Commissioner of central tax appointed under section 3 and the 
Commissioner of integrated tax appointed under the Integrated Goods 
and Services Tax Act. [Section 2(24)] 
? Common portal: means the common goods and services tax electronic 
portal referred to in section 146 [Section 2(26)]. 
? Invoice or Tax invoice: means the tax invoice referred to in section 31. 
[Section 2(66)] 
? Manufacture: means processing of raw material or inputs in any manner 
that results in emergence of a new product having a distinct name, 
character and use and the term "manufacturer" shall be construed 
accordingly. [Section 2(72)] 
? Taxable supply: means a supply of goods or services or both which is 
leviable to tax under this Act [Section 2(108)]. 
? Place of business: includes [Section 2(85)]: 
 
? Taxable person: means a person who is registered or liable to be 
registered under section 22 or section 24 [Section 2(107)]. 
? Principal place of business: means the place of business specified as 
the principal place of business in the certificate of registration [Section 
2(89)]. 
? Proper officer: in relation to any function to be performed under this 
Act, means the Commissioner or the officer of the central tax who is 
assigned that function by the Commissioner in the Board [Section 2(91)]. 
a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores
his goods, supplies or receives goods or services or both; or
a place where a taxable person maintains his books of account; or
a place where a taxable person is engaged in business through an
agent, by whatever name called.
© The Institute of Chartered Accountants of India
 
ACCOUNTS AND RECORDS 
a
a
11.5 
? Registered person: means a person who is registered under section 25, 
but does not include a person having a Unique Identity Number [Section 
2(94)]. 
? Tax period: means the period for which the return is required to be 
furnished [Section 2(106)]. 
? Document: includes written or printed record of any sort and electronic 
record as defined in clause (t) of section 2 of the Information 
Technology Act, 2000 [Section 2(41)]. 
? Voucher: means an instrument where there is an obligation to accept it 
as consideration or part consideration for a supply of goods or services 
or both and where the goods or services or both to be supplied or the 
identities of their potential suppliers are either indicated on the 
instrument itself or in related documentation, including the terms and 
conditions of use of such instrument [Section 2(118)]. 
? Conveyance: includes a vessel, an aircraft and a vehicle [Section 2(34)]. 
? Works Contract: means a contract for building, construction, 
fabrication, completion, erection, installation, fitting out, improvement, 
modification, repair, maintenance, renovation, alteration or 
commissioning of any immovable property wherein transfer of property 
in goods (whether as goods or in some other form) is involved in the 
execution of such contract [Section 2(119)] 
3. ACCOUNTS AND OTHER RECORDS [SECTION 35] 
 
Section 35 Accounts and Other Records 
Sub-section  Particulars 
(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 
(a) production or manufacture of goods; 
STATUTORY PROVISIONS 
© The Institute of Chartered Accountants of India