source Business standard
CS A Rengarajan
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Records of goods lost, stolen, gifted amust under GST draft
rules |
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Entities will have to keep records of goods lost, stolen, destroyed and given as gifts or free samples under the goods and services tax (GST) regime, expected from July 1. Complying with the “accounts and record” draft rules, put in public domain on Wednesday, will add to the compliance burden of industry. “Every registered person …shall maintain accounts of stock in respect of each commodity received and supplied by him, and …particulars of 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,” the rule said. Each volume of books of account maintained by the registered person should also be serially numbered. Excise,aproductionbased tax, was to be subsumed under GST, which isasupplybased tax. Every registered person manufacturing goods will have to maintain monthly production accounts. They will now have to show quantitative details of raw materials or services used in manufacturing and the quantitative details of the goods so manufactured, including the waste and byproducts. “Keeping the accounting records look quite onerous on the industry with just two months to go,” said Pratik Jain, leader, direct tax, PwC. “It will beabig challenge. They will also need to keep accounts of monthly production, despite moving away from excise to the supplybased GST regime.” These exciserelated recordkeeping will apply toaservice provider, too, requiring the service industry to maintain accounts showing quantitative details of goods used in the provision of each service, details of input services used and the services supplied.
Advance Ruling Authority may compromise independence COUNTDOWN The Advance Ruling Authority under the goods and services tax (GST) regime may comprise officials of the rank of joint commissioner as against nongovernment members in the current regime for Customs and central excise, if draft rules are implemented. While the move will expedite rulings, industry feels it may impact the independence of the bench. Advance rulings enable investors to know in advance about their tax liability on proposed transaction. The process has been liberalised. “It is going to be faster and easier for businesses to obtain the ruling. However, since it will not be an independent judiciary, it will beachallenge to not allowarevenue bias to come in,” said Pratik Jain, leader, indirect tax, PwC India. DILASHA SETH |
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