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

Spice Route Traders Ltd files its annual return for FY 2024-25 on its due date. Under Section 36 of the CGST Act, 2017, for how long must it retain the books of account for that year, assuming no appeal, revision or investigation is pending?

The books must be retained until seventy-two months have expired from the due date of furnishing the annual return for the relevant year. The period is counted from the due date, not from the financial year end or the actual filing date.

  1. AUntil 60 months from the due date of furnishing the annual return
  2. BUntil 72 months from the due date of furnishing the annual returnCorrect
  3. CUntil 72 months from the end of the financial year
  4. DUntil 72 months from the actual date of filing of the return, even if filed early

Explanation

Section 36 requires retention until the expiry of seventy-two months from the due date of furnishing the annual return for the year to which the accounts relate. The period runs from the due date, not from the financial year end or the actual filing date. The 60-month and year-end options use the wrong period or the wrong base.

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