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Accounts and Records under GST – Sections 35 & 36 read with Rules 56–58

Background The Goods and Services Tax framework is designed on the principle of self-assessment. Every registered person determines their own tax liability and claims input tax credit based on the records maintained. To support this mechanism,  Sections 35 and 36 of the CGST Act, 2017 , together with  Rules 56 to 58 of the CGST Rules , prescribe the form, manner, and duration of maintaining books of account and records. These provisions ensure proper audit trails, verification of transactions, and transparency in the tax system. Technical Aspects Sub-Section 1 of Section 35  mandates that every registered person keep and maintain true and correct accounts of production, inward and outward supplies, stock, input tax credit availed, output tax payable and paid, and such other particulars as may be prescribed. The records are to be kept at each registered place of business. Sub-section (2) requires records to be maintained for every place of business separately, while sub-se...
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Complete Guide to GST Registration Exemptions in India: Understanding Who is not liable for registration

Complete Guide to GST Registration Exemptions in India: Understanding Who is not liable for registration The Goods and Services Tax (GST) regime in India mandates registration for most businesses, but the law provides several exemptions to reduce compliance burden for specific categories of persons. Understanding these exemptions is crucial for businesses to ensure they remain compliant while avoiding unnecessary registration requirements. Statutory Provisions: Section 23 of CGST Act Section 23 of the Central Goods and Services Tax Act, 2017, lays down the foundation for registration exemptions. The provision categorically states: Sub-section (1): Automatic Exemptions "(1) The following persons shall not be liable to registration, namely:— (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; (b) an agriculturist, to the ...
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GST Registration in India: A Complete Guide to Sections 22 & 24

GST Registration in India: A Complete Guide to Sections 22 & 24 Understanding when GST registration becomes mandatory is crucial for every business owner in India. While many believe registration is only required after crossing the ₹40 lakh turnover threshold, the reality is more nuanced. Let's break down the registration requirements under the GST Act. Section 22: Turnover-Based Registration Section 22 of the GST Act outlines the basic threshold limits for mandatory registration based on your business turnover. The Legal Provision Section 22(1) states: "Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be reg...
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