Introduction: Goods and Services Tax (GST) is an indirect tax levied on the supply of goods and services in India. It is a comprehensive tax that has replaced multiple taxes such as VAT, Service Tax, Excise Duty, etc. GST has made it mandatory for businesses to maintain proper books of accounts to ensure accurate calculation and timely filing of returns. In this blog, we will discuss the various GST books that businesses need to maintain.
GST Books: Under the GST regime, businesses are required to maintain the following books:
- GST Tax Invoice Book: A GST tax invoice is a document that contains the details of the goods or services supplied by the business. The tax invoice book is used to maintain a record of all the tax invoices issued by the business.
- GST Purchase Invoice Book: A GST purchase invoice is a document that contains the details of the goods or services purchased by the business. The purchase invoice book is used to maintain a record of all the purchase invoices received by the business.
- GST Credit Note Book: A GST credit note is issued by the business in case of any reduction in the value of the goods or services supplied. The credit notebook is used to maintain a record of all the credit notes issued by the business.
- GST Debit Note Book: A GST debit note is issued by the business in case of any increase in the value of the goods or services supplied. The debit notebook is used to maintain a record of all the debit notes issued by the business.
- GST Payment Voucher Book: A GST payment voucher is used to record all the payments made by the business for the goods or services supplied. The payment voucher book is used to maintain a record of all the payment vouchers issued by the business.
- GST Receipt Voucher Book: A GST receipt voucher is used to record all the receipts received by the business for the goods or services supplied. The receipt voucher book is used to maintain a record of all the receipt vouchers issued by the business.
- GST Refund Voucher Book: A GST refund voucher is used to record all the refunds received by the business for the excess tax paid or any other reason. The refund voucher book is used to maintain a record of all the refund vouchers issued by the business.
In addition to the basic GST books, there are a few other books that businesses may choose to maintain to better manage their GST compliance:
- Input Tax Credit (ITC) Register: The ITC register is used to record all the input tax credits claimed by the business. This register helps reconcile the ITC claimed with the ITC available in the electronic credit ledger.
- Output Tax Liability Register: The output tax liability register is used to record the tax liability for the goods or services supplied by the business. This register helps in determining the amount of tax that needs to be paid while filing the returns.
- E-Way Bill Register: E-Way bill is a document that needs to be generated for the movement of goods worth more than Rs. 50,000. The e-way bill register is used to maintain a record of all the e-way bills generated by the business.
- Stock Register: The stock register is used to maintain a record of the opening stock, purchases, sales, and closing stock of goods. This register helps reconcile the stock on hand with the stock as per the books of accounts.
- Job Work Register: The job work register is used to record the details of the goods sent for job work and the goods received after job work. This register helps in reconciling the inputs sent for job work with the inputs received after job work.
Final ConclusionÂ
In conclusion, maintaining proper books of accounts is essential for businesses to comply with the GST laws. The books discussed above provide a minimum requirement for businesses to manage their GST compliance. However, maintaining additional books can provide a more comprehensive view of the GST compliance of the business. It is advisable to seek the help of a professional accountant to ensure compliance with the GST laws.
Here are some frequently asked questions (FAQs) related to GST books:
Q.1 What is the importance of maintaining GST books?
A. Maintaining GST books is important as it helps businesses to comply with the GST laws. It ensures accurate calculation of tax liability and timely filing of returns. It also helps businesses to reconcile their financial statements with the GST returns filed.
Q.2 What are the basic GST books that a business needs to maintain?
A. The basic GST books that a business needs to maintain are GST Tax Invoice Book, GST Purchase Invoice Book, GST Credit Note Book, GST Debit Note Book, GST Payment Voucher Book, GST Receipt Voucher Book, and GST Refund Voucher Book.
Q.3 Is it necessary to maintain additional GST books?
A. No, it is not necessary to maintain additional GST books. However, maintaining additional books such as Input Tax Credit (ITC) Register, Output Tax Liability Register, E-Way Bill Register, Stock Register, and Job Work Register can help businesses to manage their GST compliance better.
Q.4 Can businesses maintain GST books manually or is it mandatory to maintain them electronically?
A. Businesses can maintain GST books either manually or electronically. However, businesses with an annual turnover of more than Rs. 1.5 crores are required to maintain their books of accounts electronically using accounting software.
Q.5 How long should businesses maintain their GST books?
A. Businesses are required to maintain their GST books for six years from the end of the financial year in which the last entry was made.
Q.6 What is the penalty for not maintaining proper GST books?
A. The penalty for not maintaining proper GST books is Rs. 25,000. However, if the offense is repeated, the penalty can go up to Rs. 50,000.
