Under GST all indirect taxes (excise, VAT, service tax) will get subsumed into one GST, thus reducing the number of accounts required to be maintained.
In our article, we have listed the various accounts to be maintained and other records that businesses need to keep under GST.
For example, under GST, a trader has to maintain the following a/cs (apart from accounts like purchase, sales, stock) :–
- Input CGST a/c
- Output CGST a/c
- Input SGST a/c
- Output SGST a/c
- Input IGST a/c
- Output IGST a/c
- Electronic Cash Ledger (to be maintained on Government GST portal to pay GST)
While there will be initial transition challenges, GST will bring in much clarity in many areas of business. One of the areas is accounting and bookkeeping.
While the number of accounts is more apparently under GST, once you go through the accounting you will find it is much easier for record keeping. One of the biggest advantages a trader will have is that he can-set off his input tax on service with his output tax on the sale.
This sections talks about the period for which the said books of accounts and other records have to be maintained, i.e. how long the records need to be saved by the business entity.
As per the GST law every registered taxable person required to keep and maintain books of account or other records will maintain the books for at least 60 months, counted from the last date of filing of Annual Return.e Sept of following year.