What does Section 35 say?

Section 35 requires every registered person to maintain true and correct accounts of production, inward and outward supplies, stock, Input Tax Credit, output tax payable, and tax paid. These records must be maintained at the principal place of business and should be available for verification by GST authorities whenever required.

Proper record maintenance is essential for determining tax liability and ensuring compliance with GST laws. Businesses may maintain records electronically, provided they can be produced whenever demanded by the authorities. The Commissioner may also require certain classes of taxpayers to maintain additional accounts or records.

Accurate books of accounts help taxpayers file correct GST returns, claim eligible ITC, and avoid disputes during departmental audits and investigations. Failure to maintain proper records can result in penalties and adverse consequences under GST law.

Simple Example

A manufacturing company maintains records of raw material purchases, finished goods sales, stock registers, GST invoices, and tax payments. These records help establish the correctness of GST returns filed during the year.

Key Points

• Maintenance of books is mandatory.
  • Records must be accurate and complete.
  • Covers purchases, sales, stock, and taxes.
  • Electronic records are permitted.
  • Records must be available for inspection.
  • Non-compliance may attract penalties.

In One Line

Section 35 ensures that taxpayers maintain proper books and records for accurate GST compliance.