Section 35 and Section 36 of Central Goods and Services Tax Act, 2017 related to Maintaining Accounts and Other Records and Period of retention of accounts – Accounts And Records

Section 35 of CGST Act 2017- Accounts and other records

(1) Every registered person shall keep and maintain accounts and other records at his principal place of business, as mentioned in the registration certificate, a true and correct account of—

(a) production or manufacture of goods;

(b) inward and outward supply of goods or services or both

(c) stock of goods;

(d) input tax credit availed;

 (e) output tax payable and paid

 (f) such other particulars as may be prescribed:

Provided that where more than one place of business is specified in the registration certificate the accounts relating to each place of business shall be kept at such business places

Provided further that the registered person may keep and maintain such accounts and Other particulars in electronic form in such manner as may be prescribed.

(2) Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter, irrespective of whether he is a registered or not, shall maintain records of the consigner, consignee and other relevant details of the goods.

(3) The Commissioner may notify a class of taxable persons to maintain additional accounts or documents  for such purpose as may be specified

(4) Where the Commissioner considers that any class of taxable persons is not in a position to keep and maintain accounts, he may for reasons to be recorded in writing, permit such class of taxable persons to maintain accounts in such manner as may be prescribed

(5) Every registered person whose turnover during a financial year exceeds the prescribed limit shall get his accounts audited by a chartered accountant or a cost accountant and shall submit a copy of the audited annual accounts, the reconciliation statement  and other documents.

Provided that this sub section shall not apply to any department of the Central Government or a State Government or a local authority whose books of accounts are subject to audit by the comptroller and Auditor General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force (Inserted by Central Goods And Services Tax (Amendment) Act 2018 Dated 30-08-2018 w.e.f 01-02-2019

(6) Subject to the provisions of clause (h) of sub-section (5) of section 17, where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1), the proper officer shall determine the amount of tax payable on the goods or services or both that are not accounted for, as if such goods or services or both had been supplied by such person and the provisions of section 73 or section 74, as the case may be, shall, mutatis mutandis, apply for determination of such tax.

Section 36- Period of retention of accounts

Every registered person required to keep and maintain books of account or other records  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:

Provided that a registered person, who is a party to an appeal or revision or any other proceedings before any Appellate Authority or Revisional Authority or Appellate Tribunal or court, or is under investigation for an offence shall retain the books of account and other records pertaining to the subject matter of such appeal or revision or proceedings or investigation for a period of one year after final disposal of such appeal or revision or proceedings or investigation, or for the period specified above, whichever is later.

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