For GST records covered by section 36 of India’s Central Goods and Services Tax Act, keep them for 72 months from the due date for filing the annual return for the year they relate to—not simply six years from the invoice date. If relevant records relate to an appeal, revision, other proceeding or qualifying investigation, section 36 can require you to keep them longer. Organize source documents so each important figure and tax position in your returns can be traced back to its supporting records.
How long should you keep GST records?
Section 36 of the CGST Act sets the ordinary retention period at 72 months from the due date for furnishing the annual return for the year to which the records relate. The period is tied to that return due date, not the date of each transaction. The CGST Act, section 36, states: “Every registered person required to keep and maintain books of account or other records in accordance with the provisions of sub-section (1) of section 35 shall retain them until the expiry of seventy-two months from the due date of furnishing of annual return for the year pertaining to such accounts and records.”
There is an additional rule for records connected with specified matters. If you are a party to an appeal, revision or other proceeding before an appellate authority, revisional authority, tribunal or court, or are under investigation for an offence under Chapter XIX, retain the relevant records for one year after final disposal of that matter or through the ordinary retention period, whichever is later. Do not destroy records just because the ordinary 72-month period appears to have ended while a covered matter remains open. Confirm the applicable amendments, return due date and final-disposal status before calculating a case-specific destruction date.
Which documents belong in a GST audit file?
Keep records that support the accounts, transactions and positions reflected in your GST returns. The CGST Rules specify records according to the registered person’s activities; the examples below are relevant where they apply to your business.
Sales, purchases and movement of goods
- Outward-supply tax invoices and bills of supply, along with credit notes, debit notes, delivery challans and e-way bills.
- Inward-supply invoices and the supporting documents linked to purchases.
- For businesses holding goods, stock records showing opening balance, receipts, supplies, losses or disposals, and closing balance, together with evidence for relevant movements or adjustments.
Rule 56 of the CGST Rules lists relevant documents and stock information for registered persons. It also requires separate accounts for activities such as manufacturing, trading and providing services where applicable. See the CGST Rules, rule 56.
Tax calculations and return positions
- Workings and accounting records supporting tax reported and payments made.
- Input tax credit records that explain amounts availed and utilized.
- Documents supporting refunds, exemptions, deductions, tax rates or other positions reported in returns.
CBIC’s audit rules describe verification of the documents underlying the accounts and of matters including turnover, exemptions and deductions, tax rates, input tax credit availed and utilized, and refunds claimed. That makes a traceable connection between a return figure, ledger entry and source document useful during an audit. See the CBIC audit rules.
How should you organize and store the records?
Rule 56 requires the specified accounts and documents to be preserved for the section 36 period. Keep accounts and listed documents at each related place of business mentioned on the registration certificate. If you maintain them digitally, they must be accessible at each related place of business, and books required under law must be produced when demanded.
Electronic records are allowed, but they must remain recoverable and producible. The rules address proper backups so records lost through accident or natural causes can be restored within a reasonable period. Relevant electronic records must be producible on demand in hard copy or an electronically readable format. When demanded, you may also need to provide information such as audit trails and interlinkages, source documents, financial accounts, record layouts, data dictionaries, code explanations and sample documents. See CGST Rules, rules 56 and 57.
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In practice, use a filing system that preserves the relationship between returns, ledgers and source documents. Keep readable exports as well as a way to retrieve the underlying records; test that backups can be restored; and retain relevant passwords, file details and explanations for internal codes. These measures support access, restoration and production duties; the rules do not prescribe a particular storage device or software.
Paper or electronic archive: what should you check?
Either approach needs to make records readable, retrievable and available at the required business locations. Digital records are expressly addressed in the rules, including backup and production requirements; a paper archive must also be organized so requested documents can be located and produced.
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| Check | Paper archive | Electronic archive |
|---|---|---|
| Retrieval and readability | Can staff find and read the requested files? | Can staff open readable records and retrieve source documents? |
| Access at related places of business | Keep applicable records at each related place of business stated on the registration certificate. | Records must be accessible at each related place of business stated on the registration certificate. |
| Backup and restoration | Protect files from loss or damage and consider a recoverable copy. | Maintain proper backups and ensure records can be restored within a reasonable period if lost through accident or natural causes. |
| Links between records | File documents so they can be connected to accounts and return figures. | Preserve links among source documents, accounting entries and return figures, along with relevant audit-trail information. |
| Production on demand | Be able to produce the requested books and documents. | Be able to produce relevant records in hard copy or an electronically readable format. |
A drive or other storage medium can be one part of an electronic backup process, but no particular product is mandated; the key is whether records can be accessed, restored and produced.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to confirm before disposing of records
- Identify the financial year each record relates to and the due date for furnishing that year’s annual return.
- Calculate the ordinary 72-month period from that due date, rather than from the transaction date.
- Check whether an appeal, revision, other proceeding or Chapter XIX investigation concerns the records. If so, establish final disposal and apply the later statutory endpoint.
- Check whether other legal or business requirements call for a longer retention period; section 36 alone does not settle every retention obligation.
The CGST Act and Rules establish the framework, but they do not determine a particular business’s annual-return due date, the status of its dispute or every other applicable retention duty. For records connected with an active dispute or investigation, confirm the matter’s final-disposal status with a qualified tax professional before destruction.
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