Now the GST mandates all the goods lost, stolen and gifted to be maintained under the new taxation regime coming from July 1 most probably. The council and government authorities have taken this decision in anonymous certainties. Alongside, the government has also asked for a separate volume of books of account to be prepared along with the serial numbers. Also, it has been observed, that draft rules are strict and demands that any entry in registers, accounts, and documents will not be erased, effaced or overwritten in the due course of maintaining the records.
The draft rules aforementioned was being pushed by the Central Board of Excise & Customs and has concerned over the maintenance of each and every activity viz manufacturing, trading and provision of services in different records and accounts especially. The severity of the compliance is itself showing the demands of new upcoming goods and service tax regime in which one has to stick towards with all the relevant documents, including invoices, bills of supply, delivery challans, credit notes, debit notes, receipt, payment and refund vouchers and e-way bills and to perfectly align them to the records and accounts under the GST. This will be the torchbearer in the making “A true and correct account of the goods or services” according to the government plea of a clean register.
The draft rules are meant for maintaining the records and accounts of all the stock of each commodity being received and supplied with all the details clearly mentioned including “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”.
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A separate account has also been demanded by the government to be maintained in which advances received, paid and adjustments must be included, Along with details of tax payable, tax collected and paid, input tax, input tax credit claimed, also with a register of tax invoice, credit note, debit note, delivery challan issued or received during any tax period will have to be given.
The official statement said that “Any entry in registers, accounts, and documents shall not be erased, effaced or overwritten, and all incorrect entries shall be scored out under attestation and thereafter correct entry shall be recorded.” The entries must be recorded electronically while the maintain pace of every entry deleted or edited must be emphasized especially.
The draft rules stated that “Unless proved otherwise, if any documents, registers, or any books of account belonging to a registered person are found at any premises other than those mentioned in the certificate of registration, they shall be presumed to be maintained by the said registered person.”
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The manufacturing community has to maintain a monthly record of production account in which it must reveal the quantitative information of all the raw material and services consumed in the manufacturing along with the details of the raw material wasted or produced a by-product. On the other side, the service sector has to maintain the record of goods and products used in the provision of services provided along with the input service consumed and service supplied details. While the physical records must be secured till a certain period of time as mandated by the draft rule in GST, the records include invoices, bills of supply, credit and debit notes, and delivery challans.
