Every registered person shall have to maintain a “true and correct” account of the goods or services imported or exported or of supplies attracting payment of tax on reverse charge under the proposed Goods and Services Tax (GST) regime, the new set of draft rules released by the Central Board of Excise and Customs (CBEC) stated. As per the rules on accounts and records under GST, a registered person not only will have to keep a record of all relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers and e-way bills at the principal place of business and related place of business, but will also have to maintain accounts and records separately for each activity including manufacturing, trading and provision of services.
Also, any entry in registers, accounts and documents shall not be erased, effaced or overwritten. Even though the government has allowed maintenance of electronic records, a log of every entry edited or deleted needs to be maintained under the indirect tax regime, the rules said.
In addition to these records, the rules said that every registered person shall maintain accounts of stock for each commodity received and supplied by him and include information regarding the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples and balance of stock including raw materials, finished goods, scrap and wastage thereof. “This log of deleted or edited entries could pose a serious challenge when it comes to explaining deleted or edited entries to tax officers,” Rakesh Nangia, managing partner, Nangia & Co said.
“Even though excise era is over, but still we will continue to see ashes of the same. Every registered person manufacturing goods shall maintain monthly production accounts, showing the quantitative details of raw materials or services used in the manufacture and quantitative details of the goods so manufactured including the waste and by-products thereof,” he added.
The CBEC has also brought out draft set of rules on advance ruling along with rules on appeals and revision. The application for advance ruling or appeal against thereof has to be filed online with fees of Rs 5,000 and Rs 10,000, respectively. Also, an appeal to the appellate tribunal under section 112 of the Act shall be filed electronically on the common portal, following which a provisional acknowledgement shall be issued to the appellant.