Indirect Tax Laws and Practice · Accounts and Records

Rule 57 CGST Rules: Generation and Maintenance of Electronic Records

Updated 11 October 2026 · Fact-checked

Rule 57 of the CGST Rules, 2017 governs electronic records of a registered person. You must keep a proper electronic back-up that can be restored within a reasonable time, produce authenticated records on demand in hard copy or readable electronic format, and give file details, passwords and code explanations for access.

Understand Generation and Maintenance of Electronic Records (Rule 57)

Section 35 of the CGST Act allows a registered person to keep accounts and other particulars in electronic form, in the manner prescribed. Rule 57 is that prescribed manner. It deals with how safe the records are and how an officer can reach them.

The rule has three parts. Sub-rule (1) is about back-up. Sub-rule (2) is about production on demand. Sub-rule (3) is about access details where records are stored electronically.

Think of it from the officer's side. If records are lost, the officer cannot verify tax. If records are locked or coded, the officer cannot read them. Rule 57 closes both gaps: you must be able to restore data, and you must be able to open it for the officer.

Rule 57 works with Rule 56. Rule 56(15) says electronic records may be maintained in electronic form and shall be authenticated by a digital signature. Rule 56(8) requires a log of every entry edited or deleted where records are kept electronically. Rule 56(16) deals with preservation for the period in section 36.

Note the wording. The rule says the back-up must allow restoration "within a reasonable period of time". It does not fix a number of days. Do not invent one in the exam.

Key rules to remember

Rule 57(1): Back-up: Proper electronic back-up must be maintained and preserved so that, if records are destroyed by accidents or natural causes, information can be restored within a reasonable period of time; The trigger is destruction by accidents or natural causes. No fixed time limit is stated.
Rule 57(2): Production on demand: Registered person produces, on demand, relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable format; Authentication is by the registered person. The format can be hard copy or electronic.
Rule 57(3): Access details: On demand, provide details of files, passwords of files, explanation for codes used (where necessary), any other information needed for access, and a sample print copy of the stored information; Applies where accounts and records are stored electronically.
Related: Rule 56(15) and 56(8): Electronic records authenticated by digital signature; a log of every entry edited or deleted must be maintained; Supports Rule 57 and is often tested together with it.

How to solve Generation and Maintenance of Electronic Records (Rule 57) questions

For any question on electronic records, check which obligation is tested and apply the rule text to the facts.

1Identify the person: is he a registered person keeping records electronically?
2Identify the obligation tested: back-up, production on demand, or access details.
3For back-up, ask whether information could be restored within a reasonable time after accident or natural destruction.
4For production, check the officer made a demand, and the records were authenticated by the person and given in hard copy or readable electronic format.
5For access, check whether file details, passwords, code explanations and a sample print copy were provided.
6Link to Rule 56 where facts mention digital signature, edit logs or retention.
7State the conclusion: compliant or not, and what the person must do.

Quickest way: Three-limb check

When to use it: For MCQs and short case questions on Rule 57.

Back-up: restorable in reasonable time.
Produce: authenticated, hard copy or readable electronic format.
Access: file details, passwords, code explanation, sample print copy.
Match the fact to one limb and pick the option that follows the rule text.

Common mistakes in Generation and Maintenance of Electronic Records (Rule 57)

Stating a fixed number of days for restoring back-up data
Students assume a time limit as in other GST procedures.
Fix: Write only "within a reasonable period of time", as the rule says.
Saying records can be produced only in hard copy
Students focus on traditional paper records.
Fix: Remember: hard copy or any electronically readable format.
Forgetting that records must be authenticated by the registered person
Students remember only the demand part.
Fix: Write "duly authenticated by him" in your answer.
Leaving out passwords and code explanations
Students treat Rule 57(3) as a repeat of sub-rule (2).
Fix: Sub-rule (3) covers file details, passwords, explanation for codes used, other access information and a sample print copy.
Confusing Rule 57 with Rule 56
Both deal with accounts and have similar numbering.
Fix: Rule 56 is what accounts to keep; Rule 57 is how electronic records are backed up, produced and accessed.

Worked examples

Example 1

Sharma Traders, a registered person in Jaipur, keeps all its stock and sales records in accounting software on one office computer. A fire destroys the computer. It has no other copy of the data. Has it complied with the CGST Rules? What should it have done?

Show the solution

Rule 57(1) requires proper electronic back-up of records.
The back-up must be kept so that, if records are destroyed by accidents or natural causes, information can be restored within a reasonable period of time.
A fire is an accident. Sharma Traders has no back-up, so nothing can be restored.
Hence Rule 57(1) is not complied with.

Answer: Sharma Traders has not complied. It should have maintained and preserved a proper electronic back-up, stored so that data could be restored within a reasonable time after destruction by accident or natural causes.

Example 2

An officer asks Kavya Industries Ltd., which keeps coded electronic accounts, for its records. The company hands over a printout without passwords or an explanation of the codes used. Examine under Rule 57.

Show the solution

Rule 57(2): the person must produce relevant records on demand, duly authenticated by him, in hard copy or electronically readable format. A printout can satisfy this if authenticated.
Rule 57(3): where records are stored electronically, he must on demand provide details of the files, passwords of the files, explanation for codes used where necessary, other information needed for access, and a sample print copy.
Here the codes are not explained and passwords are not given, so the officer cannot access the stored files.
The obligation under Rule 57(3) is therefore unmet.

Answer: Kavya Industries has not fully complied. Besides authenticated records, it must provide file details, passwords, explanation of codes and other access information along with a sample print copy.

Exam tips

Quote the sub-rule number: 57(1) back-up, 57(2) production, 57(3) access.
Use the exact phrases "reasonable period of time" and "duly authenticated by him".
In case scenarios, link Rule 57 with Rule 56(15) digital signature and Rule 56(8) edit log.
Do not add time limits or penalties that are not in the text supplied.
MCQs often swap back-up with production; read the trigger carefully.

Practice questions from Accounts and Records

Generation and Maintenance of Electronic Records (Rule 57) in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Generation and Maintenance of Electronic Records (Rule 57): frequently asked questions

What does Rule 57 of the CGST Rules say?

It covers electronic records. You must keep a proper back-up, produce authenticated records on demand in hard copy or readable electronic format, and provide file details, passwords and code explanations needed for access.

Is there a fixed time to restore back-up data?

No. Rule 57(1) says information must be restorable within a reasonable period of time. No number of days is given.

Can I give the officer records in electronic form instead of paper?

Yes. Rule 57(2) allows hard copy or any electronically readable format, provided the records are duly authenticated by you.

How is Rule 57 different from Rule 56?

Rule 56 sets out which accounts a registered person must maintain. Rule 57 deals with electronic records: back-up, production on demand and access details.