What does Section 36 say?

Section 36 requires every registered person to preserve books of accounts, invoices, returns, and other records for a prescribed period. Generally, records must be retained for seventy-two months (six years) from the due date of furnishing the annual return for the relevant financial year.

The objective is to ensure that records remain available for audits, investigations, assessments, or legal proceedings. If any appeal, revision, investigation, or other proceeding is pending, records must be retained for a longer period until the matter is finally resolved.

Retention of records is crucial because GST authorities may seek verification of transactions several years after they occur. Proper preservation helps businesses defend their tax positions and demonstrate compliance with GST laws.

Simple Example

A taxpayer files the annual return for FY 2025-26. Related GST records must generally be preserved for six years from the due date of that annual return.

Key Points

• Records must generally be kept for six years.
  • Includes invoices, books, and GST returns.
  • Longer retention required during litigation.
  • Applies to all registered persons.
  • Supports audits and investigations.
  • Non-retention may lead to penalties.

In One Line

Section 36 requires taxpayers to preserve GST records for the prescribed period to support future verification.