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For an Indian GST-registered business, a reliable input tax credit (ITC) record starts with the source invoice and continues through the purchase, tax and accounting records that support the claim. Keep the documents organized so each purchase entry can be traced to its source, maintain the required accounts at the relevant registered places, and preserve records for the statutory period. An invoice alone does not establish that ITC is eligible.
What GST purchase records should you keep?
Use the transaction documents and accounts required by the CGST Accounts and Records Rules as the foundation of your system. Depending on the transaction, retain:
- Supplier tax invoices and debit notes, along with related credit notes.
- Delivery challans, receipt vouchers, payment vouchers, refund vouchers and bills of supply when relevant.
- E-way bills and other records connected to the movement or receipt of the purchase, when applicable.
- An account of ITC claimed and tax payable, collected and paid.
- Registers of tax invoices, credit notes, debit notes and delivery challans issued or received during the tax period.
The CGST Act also requires true and correct accounts of inward and outward supplies, stock, ITC availed, and output tax payable and paid. Records for each registered additional place of business belong in the record system as well. See the CBIC CGST Act and CBIC Accounts and Records Rules.
How should you organize the records?
Keep records at the principal place of business and applicable additional places identified in the registration certificate. The Rules call for records to be maintained separately for each activity, such as manufacturing, trading or services. They also require supplier names and full addresses. Non-composition taxpayers must maintain stock records that include opening balance, receipts, supplies, losses, write-offs and closing balance.
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For practical retrieval, give each purchase entry a clear path to the source invoice and related transaction records. This is a useful workflow rather than a prescribed statutory format: for example, use a consistent invoice reference in the purchase register and store the matching invoice and supporting records together or in a linked digital folder. If an invoice or entry is corrected, retain the amendment and audit trail rather than silently replacing the original. Electronic edits and deletions must be logged under the Rules.
What should you check on a supplier invoice?
CBIC’s FAQ identifies these key details for a tax invoice:
- Supplier’s name, address and GSTIN.
- Recipient’s name, address and GSTIN, if the recipient is registered.
- A unique invoice number and issue date.
- Description and value of the goods.
- Tax rate and tax amount.
- Signature.
Use the CBIC GST FAQ for the listed invoice details. Check that the document belongs to your business and corresponds to the purchase records, but do not treat a complete-looking invoice as proof by itself that the credit can be claimed.
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No. The CGST Act lists possession of a tax invoice or debit note issued by a registered supplier, or another prescribed tax-paying document, as one condition. It also lists receipt of the goods or services, payment of the charged tax to the Government and filing the section 39 return, subject to the Act’s other provisions and restrictions. Review the applicable statutory text and amendments for the transaction rather than relying on the invoice alone.
The Act’s 180-day supplier-payment rule also matters: if the recipient does not pay the supplier the value of the supply plus tax within 180 days, the ITC availed is added to output tax liability with interest in the prescribed manner. Credit may be taken again after payment. The rule excludes supplies on which tax is payable under reverse charge. Refer to the CGST Act and CGST Rules for the applicable provisions.
Claim-deadline caution: The CBIC-hosted Act text available at the linked Act page displays older wording for section 16(4), referring to a September return deadline. That page wording should not be relied on as current deadline advice. Check the current amended statutory text and applicable notifications for the relevant tax period.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Can GST records be kept electronically?
Yes. The Act permits electronic accounts in the prescribed manner. The Rules require proper backups so that, after accidental or natural loss, information can be restored within a reasonable period. Electronic records must have a log of edits and deletions.
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Records must be producible when demanded in authenticated hard copy or readable electronic form. If requested, the registered person must provide access details, explain codes and the record layout, and supply sample print copies. A digital system is useful only if it supports these retrieval, backup, restoration and production requirements. Paper or mixed records are also possible; choose a workflow that can cover the required documents and registers and keep them accessible at the relevant registered places. See the CBIC Accounts and Records Rules.
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How long must you retain invoices and accounts?
The ordinary statutory period is 72 months from the due date for furnishing the annual return for the year to which the accounts and records relate. The period can extend when records relate to an appeal, revision, other proceeding or a specified investigation concerning an offence under Chapter XIX: retain them until one year after final disposal or until the ordinary period expires, whichever is later. The rule is in section 36 of the CGST Act.
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