Accounts and Records under GST and Consequences of Non-Maintenance of Books of Accounts under GST
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- production or manufacture of goods
- inward and outward supply of goods or services or both
- stock of goods
- input tax credit availed
- output tax payable and paid; and
- such other particulars as may be prescribed:
However, where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business. The registered person may keep and maintain such accounts and other particulars in electronic form in such manner as may be prescribed.
According to Section 35(6), subject to the provisions of section 17(5)(h), where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the goods, services or both that are not accounted for, as if such goods or services or both had been supplied by such person and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of such tax.
What will be the consequences for not maintaining proper books of accounts under GST?
According to Section 122(1), where a taxable person who:
fails to keep, maintain or retain books of account and other documents in accordance with the provisions of this Act or the rules made thereunder fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act; shall be liable to pay a penalty of Rs 10,000 or an amount equivalent to the tax evaded or the tax not deducted under section 51 or short deducted or deducted but not paid to the Government or tax not collected under section 52 or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or the refund claimed fraudulently, whichever is higher.
According to Section 130(1) of the CGST Act, if any person-
supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or does not account for any goods on which he is liable to pay tax under this Act; or supplies any goods liable to tax under this Act without having applied for registration; or contravenes any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, and the person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation and the person shall be liable to penalty under section 122.
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