Period of retention under GST - Section 36

In accordance with the provisions of CGST Act, 2017, every registered person required to keep and maintain books of account or other records must retain them for at least seventy-two months after furnishing the annual return for the year pertaining to those accounts and records.

Registered persons are subject to appeals, revisions, or other proceedings before any Appellate Authority, Revisional Authority, Appellate Tribunal, or court, regardless of whether the petition is filed by them or by the Commissioner, or they are being investigated for an offence under Chapter XIX, For a period of one year after final disposal of such appeal, revision, proceeding or investigation, or for the period specified above, whichever is later, the books of account and other records pertaining to the subject matter of such appeal, revision, proceeding, or investigation must be retained.

Under GST - period of Retention of Accounts:

As stated under the GST Act, the maintenance of the books of accounts should be carried on by every registered taxable person for at least 72 months (6 years). The period begins with the date when the Annual Return for that year was filed. The following year, the Annual Return must be filed by the 31st of December.  

As long as a registered person is a party to an appeal, revision, or any other proceedings before a CGST or SGST Tribunal or Court, or is being investigated for an offence or penalty under Chapter XIX of the Act, it is obligated to retain its books of account and other records regarding the subject matter of such appeal, revision, proceeding or investigation for the following two periods:

(a) One year from the date that the appeal or revision or proceedings or investigation is finalized

(b) For accounts and records pertaining to a particular year, 72 months from the date on which the Annual Return is due. 

What are the consequences if a person fails to maintain proper records?

If the taxpayer does not maintain proper records for goods and services, then the proper officer must treat those goods and services as if they had been supplied by the taxpayer. The tax liability will be fixed by the appropriate officer on the unaccounted goods. The taxable person will be liable to pay the penalty added with the tax liability calculated.

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