Goods and Service Tax (GST) is an indirect tax (or consumption tax) levied in India on the sale of goods and services. GST is levied at every step in the production process, but is refunded to all parties in the chain of production other than the final consumer.
Goods and services are divided into five tax slabs for collection of tax – 0%, 5%, 12%,18% and 28%.
Businesses whose turnover exceeds Rs. 20 lakhs (Rs 10 lakhs for NE and hill states) is required to register as a normal taxable person. This process of registration is called GST registration.
GST registration usually takes between 3-10 working days.
Under GST Act
Every registered person has to maintain GST records at the principal place of business.
Records to be maintained
- 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
- Other particulars as may be prescribed
For how long should the records be maintained?
Books and records should be maintained for 6 years from the last date of filing of the annual return (31st December) for that year.
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