Section 36 of CGST Act - Period of Retention of Accounts
Section 36 of the Central Goods and Services Tax Act, 2017 prescribes how long a registered person must preserve books of account and other GST records. The normal retention period is 72 months from the due date for furnishing the annual return for the year to which the records relate. A longer period applies where specified litigation, proceedings or investigation remains relevant.
- Normal period: 72 months from the due date for furnishing the annual return for the relevant year.
- Appeal, revision, other proceedings or investigation: relevant records must be retained for one year after final disposal, or for the normal 72-month period, whichever is later.
- The provision operates with the accounts and records requirements under Section 35 of the CGST Act and the applicable CGST Rules.
Text and meaning of Section 36
Every registered person who is required to keep and maintain books of account or other records in accordance with Section 35(1) must retain those accounts and records until the expiry of 72 months from the due date for furnishing the annual return for the year to which those accounts and records relate.
The proviso deals with records connected with disputes and investigations. Where the registered person is a party to an appeal, revision or other proceeding before an Appellate Authority, Revisional Authority, Appellate Tribunal or court, whether the matter is initiated by that person or by the Commissioner, or where the person is under investigation for an offence under Chapter XIX, the books and records concerning the subject matter must be preserved for one year after final disposal of the appeal, revision, proceeding or investigation, or for the ordinary Section 36 period, whichever is later.
How the 72-month retention period works
The starting point is not simply the end of the financial year or the date on which an entry was made. Section 36 links the six-year period to the due date for furnishing the annual return for the year pertaining to the accounts and records. Therefore, the applicable annual-return due date should be identified before calculating the destruction or archival date.
| Situation | Minimum retention rule |
|---|---|
| Ordinary GST records | 72 months from the due date for furnishing the annual return for the relevant year. |
| Records relating to an appeal, revision or other specified proceeding | One year after final disposal, or the ordinary 72-month period, whichever ends later. |
| Records relating to an offence investigation under Chapter XIX | One year after final disposal of the investigation, or the ordinary 72-month period, whichever ends later. |
Relationship with Section 35 and the CGST Rules
Section 35 sets out the basic obligation to keep true and correct accounts, including records relating to production or manufacture, inward and outward supplies, stock, input tax credit and output tax. Section 36 then determines the statutory preservation period for the books and records required to be maintained.
The CGST Rules contain detailed requirements for maintenance and preservation of accounts and electronic records. In particular, the accounts-and-records rules require preservation of specified accounts and supporting documents for the period provided by Section 36 and also address electronic backup, restoration and production of electronically maintained records.
Records commonly relevant to GST retention
Depending on the nature of the business and the applicable provisions, retained material may include books of account, invoices, bills of supply, delivery challans, credit and debit notes, stock records, tax and input-tax-credit records, documents concerning inward and outward supplies, e-way bills and relevant electronic records. The precise record-keeping obligation should be read with Section 35 and the applicable rules.
Official GST references
For the current statutory and procedural material, refer to the official CBIC GST resources for the CGST Act and the Accounts and Records Rules. The GST common portal may also be used for current return and compliance services.
Related CGST Act provisions
Section 35 - Accounts and Other Records | Section 37 - Furnishing Details of Outward Supplies | Section 44 - Annual Return
This article is a general statutory guide. For a particular retention question, the applicable financial year, annual-return due date, proceedings, investigations and record category should be checked individually.