Chapter 13: Records and Accounts

Every registered person under GST is required to maintain proper accounts and records at their principal place of business. These serve as the foundation for compliance, audit, and assessment.

Statutory Basis: Section 35 and 36 of the CGST Act, 2017 and Rules 56 to 58 of the CGST Rules, 2017.

Mandatory Records: Each registered person must maintain:

Special Category Requirements:

Transporters: Records of goods transported, delivered, and consigned.

Warehouse Owners / Godown Keepers: Periodic details of goods received, stored, and dispatched.

Agents: Accounts of goods handled, receipts, and supplies on behalf of principal.

Place of Maintenance: Books must be kept at the principal place of business as mentioned in the registration certificate, or at such other places approved by the department.

Legal Reference: Section 36 of the CGST Act.

All books of account and records must be preserved for 72 months (6 years) from the due date of furnishing the annual return for the relevant financial year.

Special Cases:

If the taxpayer is under investigation, appeal, or revision proceedings → books must be retained for one year after final disposal or six years, whichever is later.

Example: For FY 2023–24, the annual return (GSTR-9) is due on 31 December 2024. Books must be retained till 31 December 2030 (six years from due date).

GST law recognises maintenance of records in digital or electronic form as valid, provided they are easily accessible and readable.

Rule 57 of CGST Rules allows:

Storage of books on computers, servers, or cloud platforms.

Retrieval on demand by tax authorities.

Proper back-up and security measures against data loss or tampering.

Key Requirements:

Records must be authenticated by digital signature.

Access must be available during inspection or audit.

Invoices, bills of supply, delivery challans, and other documents may be maintained digitally.

Backup copies must be kept to ensure retrievability in case of system failure.

Practical Tip: Many businesses now maintain records through ERP systems integrated with GSTN (SAP, Tally Prime, Zoho Books, etc.), ensuring compliance and audit readiness.

The GST Common Portal (www.gst.gov.in), managed by Goods and Services Tax Network (GSTN), forms the digital backbone of GST compliance and record-keeping.

Functions of the GST Portal:

Registration, return filing, payment of tax, and refund processing.

Auto-matching of ITC through GSTR-2B and IMS systems.

Integration of e-way bill and e-invoicing modules.

Generation of notices, orders, and communication through the portal.

Electronic maintenance of ledgers (cash, credit, liability).

Digital Integration Highlights:

Invoice Management System (IMS): Seamless flow of invoice data between suppliers and recipients.

E-Invoicing Portal: Real-time reporting of invoices and IRN generation.

E-Way Bill Portal: Tracking of movement of goods.

Audit Trail: Every action by the taxpayer is time-stamped for transparency.

Advantages of Digital Infrastructure: ✅ Minimises manual errors and duplication. ✅ Enhances transparency and traceability. ✅ Simplifies compliance for businesses with multi-location operations. ✅ Enables real-time analytics for GST administration.