VIII
CGST Act · Chapter VIII
Accounts and Records
2 sections authoredCGST Act, 2017
s. 35Accounts and other records
Section 35 lists the records every registered person must keep and where. Unaccounted goods are treated as supplied and taxed; and the old requirement of an audit by a chartered or cost accountant has gone.
- Under section 35(1) of the CGST Act, 2017 a registered person must keep true and correct accounts of production, inward and outward supplies, stock, input tax credit and output tax at its principal place of business, and at each additional place for that place's accounts; electronic records are permitted.
- Owners or operators of warehouses and godowns, and transporters, must keep records of consignors, consignees and goods, whether or not registered (section 35(2)).
- The requirement in section 35(5) to have accounts audited by a chartered or cost accountant and file a reconciliation was omitted from 01.08.2021; the annual reconciliation statement (GSTR-9C) is now self-certified.
- Goods not accounted for are treated as supplied and tax is determined on them as if under section 73, 74 or 74A (section 35(6)), except goods lost, stolen or destroyed within section 17(5)(h).
s. 36Period of retention
Section 36 sets how long GST records must be kept: six years from the due date of the annual return for the year, extended while any proceeding about them is pending.
- Under section 36 of the CGST Act, 2017 accounts and records must be retained for seventy-two months from the due date of the annual return for the year to which they relate.
- A person who is party to an appeal, revision or other proceedings, or under investigation for an offence or under Chapter XIV, must keep the related records for one year after final disposal, or for the seventy-two months, whichever is later.