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

Under the CGST Act, 2017, for how long must a registered person retain books of account and other records kept under section 35(1), where no appeal or other proceeding is pending?

Records must be kept until 72 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 the actual filing date or the year end, and it is not 60 months.

  1. AUntil expiry of 72 months from the due date of furnishing the annual return for the year pertaining to such accountsCorrect
  2. BUntil expiry of 72 months from the end of the financial year to which the accounts relate
  3. CUntil expiry of 60 months from the due date of furnishing the annual return for that year
  4. DUntil expiry of 72 months from the date on which the annual return is actually filed

Explanation

Section 36 requires retention until expiry of seventy-two months from the due date of furnishing the annual return for the year pertaining to the accounts. The period runs from the due date, not the actual filing date or the financial year end, so the 'actual filing date' option is wrong. Sixty months is not the prescribed period.

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