QUESTION
Mr A deals in providing services
related to human resources. It has three registrations under GST in the state of
Haryana, Maharashtra and Karnataka. In this regard:
1) Do they require to maintain separate books for accounts for each
registration?
2) Do they require to open/maintain separate bank accounts for each
state/registration?
ANSWER
FACTS OF THE CASE :
A supplier has registration in three states: Haryana,
Maharashtra and Karnataka.
Points under discussion :
LAW APPLICABLE :
Subsection 1 of Section 35 of CGST act dictates that
"Every registered person shall keep and maintain, at his
principal place of business, as mentioned in the certificate of
registration, a true and correct account of'
(a) production or manufacture of goods;
(b) inward and outward supply of goods or services or both;
(c) stock of goods;
(d) input tax credit availed;
(e) output tax payable and paid; and
(f) such other particulars as may be prescribed:
Provided that where more than one place of business is specified in the
certificate of registration, the accounts relating to each place of business
shall be kept at such places of business:
Provided further that the registered person may keep and maintain such accounts
and other particulars in electronic form in such manner as may be prescribed."
INTERPRETATION :
In the given case the supplier is having 3 separate registrations in 3 separate
states and therefore he becomes a registered person in every state.
Every state office has a separate registration certificate mentioning separate
principal place of business respectively.
As per Section 35(1) of CGST Act, every registered person shall maintain
specified books of accounts at his principal place of business. However, the law
is silent on the matter of Bank Accounts
CONCLUSION :
Specified Books of accounts must be maintained at the respective principal place
of business. However, the bank accounts may/may not be separate as per the
supplier's discretion.
(Reply dt. 03/08/2021)