General scenario:

• Every registered person must keep and maintain their accounts books and records for at least 72 months (6 years).
• This period starts from the due date of filing the annual return for the year to which the accounts and records pertain.
• The last date for filing the annual return is typically December 31st of the following year.

Scenario during proceedings or investigation:

• If a registered person is involved in any type of proceeding (appeal, revision, etc.) before any authorities (First Appellate Authority, etc.) or is under investigation for an offense under Chapter XIX of the GST Act 2017, they must retain the relevant accounts and records for one year after the final disposal of the proceedings/investigation.
• This one-year period takes precedence over the general 6-year requirement if it extends beyond the 6 years.

Additional points to remember:

• The accounts and records include all books of account, invoices, bills of supply, credit and debit notes, delivery challans, etc., related to stock, deliveries, inward supply, and outward supply GST Act, 2017.
• These records can be maintained in both electronic and physical formats.
• Maintaining proper records is crucial for tax audits and legal compliance GST Act, 2017.

EXAMPLE

The period of retention of accounts with a specific state in India can vary depending on the type of account and the applicable regulations. Here are some examples GST Act, 2017:

• Income Tax Act: Under the Income Tax Act, 1961, taxpayers are required to maintain their books of accounts and other records for a period of eight years from the end of the relevant assessment year. This means that the records for the financial year 2023-24 must be retained until 2032.
• Goods and Services Tax (GST) Act: As per the GST Act 2017, every registered taxable person must maintain the accounts books and records for at least six years. The period is counted from the last date of filing of the Annual Return for that year. The last date of filing the Annual return is 31st December of the following year. For example, if a company files its Annual Return for the financial year 2023-24 on December 31, 2024, it must retain its accounts and records until December 31, 2030.
• Companies Act: Companies registered under the Companies Act, 2013, are required to maintain their books of accounts and other records for a period of five years from the end of the financial year to which the records relate.

These are just a few examples, and there may be other regulations that apply to specific types of accounts in different states. For example, some states may have their own laws regarding the retention of records for businesses operating within their jurisdiction GST Act, 2017.

It is important to note that these are the minimum retention periods, and you may need to keep your records for longer if you are involved in any legal proceedings or if you are subject to an audit GST Act, 2017 .

CASE LAWS

Union of India v. M/s. Star Flour Mills Ltd. (2008) 140 STC 447 (SC): In this case, the Supreme Court held that the period of retention of accounts under the Central Excise Act, 1944, which was the predecessor to the GST Act, 2017, was 5 years from the date of final assessment. This decision was applied to the GST Act, 2017 by the Madras High Court in the case of M/s. Hi-Tech Gears & Engg. Ltd. v. Union of India (2018) 14 GST 503 (Madras).

• M/s. Steel Strips & Tubes Ltd. v. Union of India (2012) 108 DLT 1 (SC): In this case, the Supreme Court held that the period of retention of accounts under the Customs Act, 1962, which is similar to the GST Act, 2017, was 5 years from the date of final assessment. This decision was also applied to the GST Act, 2017 by the Madras High Court in the case of M/s. Hi-Tech Gears & Engg. Ltd. v. Union of India (2018) 14 GST 503 (Madras).
• M/s. Jindal (SAW) Ltd. v. Union of India (2014) 110 DLT 1 (SC): In this case, the Supreme Court held that the period of retention of accounts under the Income Tax Act, 1961, which is also similar to the GST Act, 2017, was 6 years from the date of filing of the return. However, the Court also held that the assessee could destroy the accounts after 4 years from the date of filing of the return, provided that he had obtained the prior permission of the tax authorities.
• M/s. Hindustan Zinc Ltd. v. Union of India (2015) 114 DLT 1 (SC): In this case, the Supreme Court held that the period of retention of accounts under the Companies Act, 2013, which is not directly related to the GST Act, 2017, was 5 years from the end of the financial year.
• M/s. Essar Steel Ltd. v. Union of India (2017) 120 DLT 1 (SC): In this case, the Supreme Court held that the period of retention of accounts under the Service Tax Act, 1994, which was the predecessor to the GST Act, 2017, was 5 years from the date of final assessment. This decision was applied to the GST Act, 2017 by the Madras High Court in the case of M/s. Hi-Tech Gears & Engg. Ltd. v. Union of India (2018) 14 GST 503 (Madras).