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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), in the ordinary case where no appeal or investigation is pending?

A registered person must retain accounts and records until seventy-two months have expired from the due date of furnishing the annual return for the relevant year. The period runs from the due date, not from the financial year end or the actual filing date.

  1. AUntil 72 months from the due date of furnishing the annual return for the year to which the records pertainCorrect
  2. BUntil 72 months from the end of the financial year to which the records pertain
  3. CUntil 60 months from the due date of furnishing the annual return for that year
  4. DUntil 72 months from the date of actual filing of the annual return

Explanation

Section 36 requires retention until the expiry of seventy-two months from the due date of furnishing the annual return for the year pertaining to the records. The option counting from the financial year end uses the wrong starting point. The option using actual filing date also uses the wrong base, since the law refers to the due date.

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