How Can Gst Software Help Startups With Tax Compliance Under The Gst Regime?

By Author: Mohit Yadev
Total Articles: 74
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Maintaining GST Accounts Online — Is it Legal?
The GST Act set to be implemented in India will change the way businesses maintain their accounts and records. So far, businesses had to comply with service tax regulation, VAT regulation, central excise regulations and others, multi-fold increasing the complexity of maintaining compliance. Under GST, many of the taxes would be subsumed and most businesses would only have to file GST returns and income tax returns. However, filing GST return could be cumbersome for businesses that do not register under the GST composition scheme, as nearly 3 returns would have to be filed every month. Hence, many businesses would have to adopt a GST accounting software India or online accounting software to ease their compliance filing work. However, are businesses allowed to maintain their accounts online under GST? We find out!
GST Accounts and Records to be Maintained
According to the GST Act, all businesses having GST registration are required to maintain the following documents at the principal place of business for a period of six years from filing GST annual return.
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... 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:

In addition to the above records, the GST Accounts and Records Rules have mentioned additional documents that must be maintained by all businesses.
Can GST Accounts be Maintained Online?
Yes, all the GST Accounts and Records can be maintained online, subject to certain conditions. Hence, its important for all persons using an online GST accounting software to ensure that their accounting software is compliant with the following criteria’s set forth by the GST Act.
All GST taxable persons are required to maintain accounts for a period of 6 years from the date of filing of annual return.
As per GST rules electronic back-up of records should be maintained and preserved in such manner that, in the event of destruction of such records due to accidents or natural causes, the information can be restored within reasonable period of time.
The GST taxpayer maintaining electronic records should produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format.
The data must be stored in India.
When the accounts and records are stored electronically by any GST registered taxpayer, they are required to provide the details of such files, passwords of such files where necessary for access and any other information which is required for such access along with sample copy in print form of the information stored in such files, when demanded by an authorised GST Officer or Authority.
GST records maintained in electronic form should be authenticated by means of a digital signature.