Section 36 – Period of Retention of Accounts and Records
Section 36 of CGST Act, 2017 – Period of Retention of Accounts and Records
Updated on: February 2026 (as applicable till date)
Prepared by: Yours Tax Consultant
1. Scope and Purpose of Section 36
Section 36 prescribes the minimum period for which books of account and records must be retained by a registered person under GST.
This section ensures availability of records for:
- Audit
- Scrutiny
- Assessment
- Investigation and litigation
2. Statutory Provision – Section 36
Section 36:
Every registered person required to keep and maintain books of account
or other records in accordance with the provisions of section 35
shall retain them until the expiry of seventy-two months
from the due date of furnishing of annual return
for the year pertaining to such accounts and records.
3. Standard Retention Period – 72 Months
The general rule is:
- Records must be retained for 72 months (6 years)
- Period is counted from the due date of annual return
Example:
- FY 2019–20 annual return due date: 31 December 2020
- Records must be retained till: 31 December 2026
4. Records Covered under Section 36
The retention requirement applies to:
- Books of accounts maintained under Section 35
- Tax invoices, debit notes and credit notes
- Delivery challans
- Returns filed under GST
- Electronic records and backups
Both physical and electronic records are covered.
5. Special Cases – Ongoing Proceedings
Where a registered person is a party to:
- Appeal
- Revision
- Investigation
- Any other proceedings
records shall be retained for:
- One year after final disposal of such proceedings, or
- 72 months from annual return due date,
whichever is later.
6. Retention in Case of Electronic Records
Where records are maintained electronically:
- Proper back-up must be preserved
- Records must be retrievable in readable format
- Access must be provided to tax authorities on demand
Loss of data or inability to produce records is treated as non-maintenance.
7. Section 36 Read with Section 35 and CGST Rules
Section 36 must be read together with:
- Section 35 – Accounts and other records
- Rule 56 – Maintenance of accounts
- Rule 57 – Electronic records
8. Consequences of Non-Retention of Records
If records are not retained for the prescribed period:
- Adverse inference may be drawn
- Tax liability may be determined on best judgment basis
- Penalty under Section 122 may be imposed
In litigation, absence of records generally weakens the taxpayer’s case.
9. Common Practical Mistakes
- Destroying old records assuming limitation has expired
- Ignoring extended retention due to appeal or investigation
- No backup of electronic records
- Merging or closing business without preserving records
10. Related Provisions
- Section 35 – Accounts and other records
- Section 65 – Audit by tax authorities
- Section 73 – Determination of tax (non-fraud)
11. Professional Tip
Never destroy GST records mechanically after 6 years. Always check whether any appeal, audit or investigation is pending or concluded recently. Section 36 retention often decides the outcome of disputes.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Future amendments or judicial pronouncements may require revision.
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