With the introduction of GST, there will be reduction in number of accounts to be maintained as all the previous indirect taxes like Service tax, VAT and Excise duty will be subsuming to GST. The businesses need to maintain/ keep various accounts and records under GST which are discussed below.
Apart from traditional accounts like purchase, stock and sales, the traders need to maintain below mentioned accounts under GST rules:
Ignoring the challenges to be faced in the initial phase of implementation, GST is much likely to bring clarity in most of the area of business and one out of them is accounting and book keeping. It seems to be like GST is having a lot of accounts, but as soon as one goes through the accounting; it looks very easy for the purpose of keeping records. Setting off the input tax credit on services with output tax on sale is the biggest advantage a trader can avail from GST accounts.
Electronic ledger or e-ledger is a statement of input tax credit and cash with respect to registered taxpayer. A respective credit is given in electronic ledger (electronic credit ledger and electronic cash ledger) when a person pays GST via internet banking, NEFT, RTGS cheque or cash. These two electronic ledgers are generated as soon as registration with common portal of GST is done by the taxpayer through GSTN.
As the name suggests, this head clears the period for which the records and books of accounts need to be maintained. It essentially draws a line up to which a records needs to be preserved/ saved by the business. As per the GST law, a registered taxable person needs to maintain/ save/ preserve records and books of accounts for at least 60months from last filing of annual return.
The law also talks about the outcomes of non maintenance of proper records and an improper treatment of books of accounts.