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CMA Final · Indirect Tax Laws and Practice · Accounts and Records

Arjun Traders files its annual return for FY 2024-25 on its due date, 31 December 2025. It is not party to any proceedings. Under Section 36 of the CGST Act, until when must it retain the books for that year?

Books must be retained until seventy-two months after the due date of the annual return. With a due date of 31 December 2025, that is six years, so retention runs until 31 December 2031.

  1. A31 December 2030
  2. B31 December 2031Correct
  3. C30 June 2032
  4. D31 December 2026

Explanation

Retention is until expiry of seventy-two months (6 years) from the due date of furnishing the annual return. 31 December 2025 plus 72 months is 31 December 2031. The 2030 option uses only 60 months, which is a wrong period.

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