KGST Rules 32Chapter V · Inspection of Business Places and Accounts and Establishment of Check Post

Section 32 · Maintenance and preservation of accounts

(1)

Every person registered under the Act, every dealer liable to get himself registered under the Act and every other dealer who is so required by an assessing authority by notice served in the prescribed manner, shall keep and maintain the following books of accounts disclosing true and complete accounts of his daily transactions in Malayalam, Tamil, Kannada Gujarathi or English showing the goods produced, manufactured, bought and sold by him and the value thereof separately together with the vouchers and bills:-

(i)

a daily cash book, that is to say, a record of all cash receipts and payment kept & maintained from day to day indicating the cash balance in hand at the end of each day;

(ii)

a journal, if the accounts are maintained according to mercantile System of accounting;

(iii)

a ledger.

(2)

Every dealer shall keep separate purchase and sales accounts for different goods liable to tax at different rates of tax.

(3)

Every registered dealer, every dealer liable to get himself registered under the Act and every other dealer who is required so to do by the assessing authority shall keep the current books of account at the place or places of business entered in the certificate of registration. Every purchase & every sale shall be brought to account then and there as soon as the purchase or sale is effected.

(4)

Every dealer in declared goods shall maintain separate accounts in respect of each of such class of goods.

(4A)

Every dealer liable to pay turnover tax shall maintain separate accounts for the goods liable to turnover tax;

(5)

Every dealer shall keep separate accounts in respect of sales or purchases in the course of export or import and in respect of inter-State sales or purchases.

(6)

Every commission agent, broker, del credere agent, auctioneer or any other mercantile agent shall maintain accounts showing:-

(a)

particulars of Authorisation received by him to purchase or sell goods on behalf of each principal separately and the date on which a copy of such Authorisation in each case was sent to the assessing authority.

(b)

particulars of goods purchased, or of goods received for sale on behalf of each principal each day;

(c)

details of purchases/sales effected on behalf of each principal each day;

(d)

details of account furnished to each principal each day;

(e)

the tax paid on purchases or on sales effected on behalf of each principal and the Chalan No. and date of remittance of the tax into Treasury.

(7)

Every dealer who sells goods to a purchasing agent shall keep particulars of the name & add: of the purchasing principal on whose behalf the agent buys.

(8)

Every purchasing agent shall keep particulars of the names and addresses of dealers or persons from whom they purchases the goods and the selling agent shall keep particulars of the names and addresses of the dealers or persons to whom they sold the goods.

(9)

Every wholesale dealer, importer and manufacturer shall maintain day to day stock accounts of each class of goods dealt in by him. The stock account shall contain particulars of purchases / receipt sales / deliveries & balance stock.

(9A)

Omitted.

(10)

Every dealer liable to pay tax shall issue a bill or cash memorandum in respect of every sale involving an amount of Rupee ten or more and in all other cases on demand by the purchaser and where the sale is subjected to approval by the purchaser, such dealer shall issue bill or cash memorandum specifying therein that the sale is subject to approval in a stated period of time.

(11)

Every such bill or cash, memorandum shall bear the name and address of the seller, with hi trade name, if any, his registration certificate number, quantity and value of goods sold, other charges realised being separately show and in the case of sales exceeding Rs. 100 the full name and address of the purchaser and shall be signed and dated by the dealer or his authorised agent.

(12)

Every such bill or cash memorandum shall be prepared in duplicate serially machine-numbered, one copy of it shall be issued to the purchaser and the other copy shall be retained by the dealer. The serial numbers assigned to the bills or cash memoranda shall run consecutively for the whole year. Where a dealer maintains separate series of bills or cash memoranda for different classes of goods, such dealer may use different series with the alphabets, A, B, C, etc., prefixed to each series. The dealer shall intimate the series and the opening numbers of Bills of cash memoranda intended to be used by him in a year to the assessing authority during the month of April and the last number of bills or cash memoranda issued shall be noted in the annual return relating to the year.

(12A)

In case where the seller does not issue sale bill or cash memoranda in respect of sale effected by him, the purchasing dealer shall issue a purchase bill or bought note in respect of every such purchase. Every such purchase bill or bought note shall contain the name and address of the purchaser, his trade name, if any, registration number, name and address of the seller with his trade name and Registration Certificate number, if any, the quantity and value of the goods purchased and other charges, if any deducted, there from, dated signature of the purchaser of his authorised agent and counter signature of the seller or his authorised agent. It shall be prepared in duplicate and shall be serially machine numbered. One copy of the same shall be issued to the seller and the other copy shall be retained by the purchaser. The serial number shall run consecutively for the whole year. The dealer shall intimate the opening number of the purchase bill or bought note to the assessing authority during the month of April and the number of the last bill or bought note issued shall be furnished in the annual return of the year.

(13)

Every dealer in goods taxable at the point of first sale in the State shall, if he is not liable to tax on such goods by reason of his not being the first seller of the goods in the State, obtain in certificate written and signed underneath or on the other sale of the bill or cash memorandum to be effect that the goods covered by the bill or cash memorandum had suffered tax at his (sellers) hands or at the hands of any other dealer mentioned in the certificate. The seller in such goods shall given such a certificate on every sale made by him.

(13A)

Omitted.

(13B)

Omitted.

(13C)

Omitted.

(14)

Omitted.

(14A)

Omitted.

(14AA)

Omitted.

(14B)

The Certificate required to be furnished under subsection (1) of section 27A shall be in Form No. 50A shall be furnished to the assessing authority in the case of a company on or before 31st December and in other cases on or before 31st October to the year succeeding to which it relates. Along with the certificate of audit in Form 50A signed by chartered accountant, the dealer shall file a statement in Form 50B.

(14C)

Omitted.

(15)

Every manufacturer of goods shall maintain daily production accounts, showing quantitative details of the various raw materials used for the manufacture and the quantitative details of the goods so manufactured.

(15A)

Omitted.

(16)

Every dealer who is required to maintain stock accounts shall maintain subsidiary accounts for each godown if there is more than one godown for keeping his stocks.

(17)

Every wholesale dealer while delivering goods to a retail dealer in pursuance of sale where no sale bill is issued or every person who consigns goods by any vehicle or vessel or any other means in pursuance of a sale where a sale bill is not issued or consigns goods through the said means from one godown to another or from one of his shops to another for the purpose of storage or sale, shall issue a delivery note in Form 26. A blank book of Delivery Note of Form 26 shall be obtained from the assessing authority, on payment of a fee at the rate of ninety-five rupees per book of 50 forms.

(18)

Every such delivery note shall be prepared in triplicate, the duplicate and triplicate being carbon copies of the original serially machine numbered shall be kept in book form and shall be duly signed and dated by the consigning dealer or his manager or authorised agent and the original of it shall be furnished to the Assessing Authority concerned, and the duplicate shall be retained by the purchasing dealer or the person to whom the goods are delivered for transporting and the triplicate shall be retained by the consigning dealer.

(19)

Omitted.

(19A)

Every person who consigns goods by any vehicle or vessel which is not in pursuance of a sale shall issue a certificate of ownership in Form 27 A.

(20)

Purchase bills or vouchers of exempted goods and goods liable to tax at different rates shall be kept separately date-wise and shall be serially numbered so as to facilitate easy checking of accounts by the assessing authority concerned.

(21)

Accounts maintained by dealer together with all vouchers, bills, declarations, way bills, and delivery notes relating to stocks, deliveries, purchases, output and sales shall be preserved by them for a period of two years from the date of completion of the final assessment of the year to which they relate or from the date of disposal of the appeal or revision arising out of such assessment or from the date of completion of any other proceeding under the Act connected with such assessment or appeal or revision, whichever is later and shall be kept at the place of business mentioned in the certificate of registration.

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