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What records should a GST-registered business keep?
Section 35 of the Central Goods and Services Tax (CGST) Act, 2017, requires registered persons to maintain accounts of production or manufacture, inward and outward supplies, stock, ITC availed, and output tax payable and paid. The rules add transaction-level records and documents. Keep a connected trail: a purchase or sale document should be traceable to the relevant entry in your books, stock movement, return, tax payment, or ITC claim, as applicable.
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Core books and accounts
- Accounts of production or manufacture, where relevant to the business.
- Records of inward and outward supplies, including relevant transactions involving imports, exports, and reverse-charge supplies.
- Stock accounts and records of advances, tax payable, tax collected and paid, input tax, and ITC claimed, as applicable.
- Registers of invoices and related documents, with the underlying accounting entries and supporting records.
- Supplier and customer names and complete addresses, and the addresses of premises where goods are stored, including during transit, together with stock particulars.
Organize the records around the business’s activities, such as manufacturing, trading, or services, and check which specific requirements apply to the taxpayer and transactions. A business that holds goods will generally need a different supporting trail from one that provides services without maintaining stock.
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The rules identify documents including tax invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers, and e-way bills. Keep both inward and outward documents relevant to your transactions, and link them to the related ledger entry, return, payment, movement of goods, or ITC claim.
#1 Best Overall
- Two-Part Carbonless Invoice Book: Each invoice book has 50 sets of invoices, each with a white/light yellow section, with the yellow section retained in the invoice book to maintain detailed records.
- Consecutively Numbered: Enlarged red 6-digit numbers in the upper right corner of each invoice receipt book help you quickly navigate through your orders.
- Wraparound Divider Flap: A thick folded cardboard divider is integrated into the back of each invoice book for use between each two-part sales order to prevent the written content from rubbing off on subsequent copies of the invoice, resulting in wasted invoices.
- 2 Packs/50 Sets (100 Sets Total): Each invoice book provides 50 sequentially numbered carbonless sets of 2 invoice books for long-term use.
- Customizable Space: Each invoice book for small business has space at the top to add a company seal or sticker.
Do not assume every transaction calls for the same document. Whether a supply requires a tax invoice, bill of supply, or another document depends on the transaction and current rules. CBIC’s Tax Invoice, Credit and Debit Notes rules set out invoice particulars and timing. The general timing excerpt states that a service invoice is issued within 30 days of supply, with a 45-day period for specified insurers, banks, financial institutions (including NBFCs), subject to further provisions. Verify the current rule text and that the supplier and transaction fall within the relevant provision before applying those periods.
Stock and movement records
Where applicable, stock accounts cover opening balance, receipts, supplies, and closing balance, including raw materials, finished goods, scrap, and wastage. They also account for goods lost, stolen, destroyed, written off, given away, or distributed as free samples. Keep movement documents and other supporting records that explain these events and any differences between book stock and physical stock. The rules also address premises where goods are stored, so keep those details aligned with the business’s actual arrangements.
Tax, ITC, and return support
Preserve the workings and documents behind tax collected and paid, tax payable, input tax, ITC claimed, and figures reported in returns. A useful file for the relevant period may include sales and purchase registers, return workings, tax-payment evidence, credit and debit note support, and reconciliations. This is practical preparation based on recordkeeping duties and audit scope, not a claim that every item must be filed in every case.
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1Repair Windows errors before they cause bigger problems2Fix the driver behind crashes, sound loss and screen glitches3Clear out junk files and repair common Windows errorsHow long must GST records be retained?
Section 36 of the CGST Act sets the ordinary retention period at 72 months from the due date for furnishing the annual return for the year to which the records relate. The clock is not simply six years from the date of a transaction. Use the annual-return due date for the relevant year as the starting point, and check the applicable filing and legal position for that year. The Act’s retention provision is available on the CBIC CGST Act page.
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- QUALITY INVOICES: Adams Order books provide a professional invoice or customer receipt; a great way to create and maintain a professional image for small businesses and service providers
- 50 TWO-PART CARBONLESS FORMS: Customers get the perforated white top copy; retain the canary and pink copies for your records
- WRAP-AROUND COVER: Fold the back cover between sets to keep invoices neat and legible
- ROOM FOR CUSTOMIZATION: A blank space at top leaves room for your company stamp; a big savings over custom-printed forms
- CONSECUTIVELY NUMBERED: Large 6-digit numbers in the upper right hand corner help you thumb through orders quickly
A longer period can apply to records connected with an appeal, revision, or other proceeding before the specified authority or court, or with an investigation for an offence under Chapter XIX. In those cases, preserve the connected records until one year after final disposal or the ordinary section 36 period, whichever is later. This extension is tied to records related to the matter; identify and retain the relevant evidence through the longer applicable period.
Where should records be kept?
The rules provide for books to be kept at the principal place of business and related registered places, and address the keeping of preserved accounts and related invoices, bills of supply, notes, and delivery challans at each related place of business. They also address digital accessibility at related places where records are maintained electronically. Check the current rule wording against the business’s registration and premises setup. The CBIC Accounts and Records Rules contain the relevant provisions.
How to keep electronic records ready
Electronic records are permitted, but they still have to be recoverable and producible. The rules require proper backups so records can be restored within a reasonable period after accidental or natural-cause loss. On demand, relevant records must be provided, duly authenticated, in hard copy or a readable electronic format.
The rules also describe information that may be demanded about the audit trail and inter-linkages: source documents in paper or electronic form, financial accounts, record layout, a data dictionary, explanations for codes, total record counts for each field, and sample copies of documents. Keep records exportable and be able to explain how a figure in a return connects to the books and its source documents. A software product or electronic format is not automatically sufficient merely because it stores records; assess whether the actual setup can meet these duties.
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- QUALITY INVOICES: Adams Invoice books provide a professional invoice or customer receipt; easily customize by using the extra space at the top and your company stamp
- 50-TWO PART CARBONLESS FORMS: Customers get the perforated white top copy; retain the yellow copy for your records
- WRAP-AROUND COVER: Fold the back cover between sets to keep invoices neat and legible
- CONSECUTIVELY NUMBERED: Large 6-digit numbers help you thumb through invoices quickly
- STOCK UP: Each book includes 50 white/canary sets; order several to keep your favorite forms on hand
- Maintain a backup that can be restored, rather than relying on a single live copy.
- Keep readable exports and the supporting documents needed to interpret them.
- Preserve the links between source documents, accounting entries, and reported figures.
- Be ready to explain layouts, codes, and record inter-linkages when relevant records are requested.
Paper and electronic approaches have different practical strengths, but neither removes the production and retention duties. Paper files may be straightforward to inspect, while electronic systems can make searching and exporting easier; the relevant test is whether records are complete, accessible, restorable, readable, and traceable. If records are kept digitally, make sure the business can provide readable output and the supporting audit-trail information when requested. The rules permit manual or electronic recordkeeping; they do not prescribe buying a particular invoice book, software package, or format.
First identify whether the communication is an audit or a scrutiny notice
GST audit and return scrutiny are different procedures, and the form named in the communication helps identify what the officer is asking you to address. Read the notice itself for its provision, scope, period, issues, and response deadline; do not assume that every request calls for the same set of documents.
Section 65 audit: FORM GST ADT-01
For an audit under section 65, the Act says the registered person must be informed at least 15 working days before the audit. The rules identify FORM GST ADT-01 for the audit communication. Audit verification may examine the documents on which the books are based and the returns or statements furnished, including the correctness of turnover, exemptions and deductions, tax rates, ITC availed and utilized, refunds claimed, and other relevant issues.
The Act provides for completion within three months from commencement, with a possible extension of up to a further six months when the Commissioner records reasons. The rules provide for audit discrepancies to be communicated, a reply from the registered person, due consideration of that reply, and communication of audit findings in FORM GST ADT-02. Keep the notice, submissions, acknowledgements, schedules, and findings together with the underlying records.
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- This value 3 pack of Adams Invoice Books give you 150 two part carbonless invoices with a perforated white customer receipt and yellow duplicates for your records; 3 50-invoice books per pack
- Unique horizontal invoice sheets capture the purchased by and shipped to addresses; a compact 5-9/16 x 8-7/16 page still leaves plenty of room for details on up to 12 items sold
- Wraparound back cover prevents write-through between sets; pull out the perforated white customer receipt and the yellow carbonless duplicates stay behind for your records
- Unique 6 digit invoice numbers help you thumb through orders quickly; blank space up top gives you room for a company stamp—an affordable custom touch
- In value packs with three 50-invoice books for your small business; buy ahead to keep on site or take on the road for pop-up shop sales
Return scrutiny: FORM GST ASMT-10
For a return selected for scrutiny, the rules describe FORM GST ASMT-10 as the communication of discrepancies and request for an explanation. Under the cited rule text, the period specified for the explanation cannot exceed 15 days. The actual deadline is the one stated in the notice. Scrutiny under ASMT-10 is distinct from a section 65 audit notice in ADT-01.
Special audit: FORM GST ADT-03 and ADT-04
The rules also describe a special audit direction under section 66 in FORM GST ADT-03 and communication of findings in FORM GST ADT-04. Do not treat a special-audit direction as interchangeable with an ordinary section 65 audit or return scrutiny notice.
The forms and procedures are set out in CBIC’s Assessment and Audit Rules. Confirm the current rules and the legal provision cited in your own communication.
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How to prepare a records pack for a notice
- Read the notice closely. Note the form, statutory provision, financial year or tax periods, each issue raised, and the response due date.
- Export the relevant returns. Keep filed returns, filing acknowledgements, and tax-payment records for the periods and issues covered.
- Collect the underlying records. Assemble relevant books, invoices, notes, challans, vouchers, stock and movement evidence, and related contracts or source records for the requested periods.
- Reconcile each issue. Trace the figure in question from source documents through ledgers and books to the return and payment. Record how the calculation was made and support any difference with evidence.
- Prepare electronic records for production. Preserve a restorable backup and readable exports, including audit-trail and inter-linkage information where applicable.
- Preserve the complete correspondence. Keep a copy of every response and attachment, proof of submission, later correspondence, and the final outcome with the records for the matter.
This is an organizing workflow, not a universal statutory submission list. The documents actually requested depend on the notice, period, taxpayer category, business model, and facts. Consider qualified GST professional assistance if the notice raises material concerns such as tax short payment, ITC eligibility, classification or rate, or stock discrepancies.
Best Value
- 2 part carbonless forms (White originals, Canary duplicates) for invoicing customers
- Wraparound cover attached to back to place between sets
- Consecutively numbered within each book
- 50 sets per book
- Space at top for company stamp
What makes a recordkeeping system audit-ready?
Paper and electronic records can both be part of a compliant system, but neither format by itself guarantees readiness. The practical test is whether you can recover the records, produce them in a readable form, and follow the trail from a return or tax figure back to the relevant books and source documents. For businesses holding goods, that trail should also explain stock receipts, supplies, losses, write-offs, and other movements.
Review the system against these questions:
- Can you locate the requested period’s books and supporting transaction documents?
- Can a reviewer connect invoices and other evidence to entries, returns, tax payments, stock movements, and ITC claims where relevant?
- Can electronic records be restored from backup and produced in a readable format?
- Can you explain codes, record layouts, and links between source records and accounting data when required?
- Have you identified any appeal, revision, other proceeding, or investigation that extends retention for connected records?
These checks help expose missing links before a deadline makes them harder to resolve. They do not replace checking the specific notice and the current provisions that apply to the business.
Frequently Asked Questions
How long should a business keep GST records in India?
Section 36 of the CGST Act sets the ordinary period at 72 months from the due date for furnishing the annual return for the year the records relate to—not simply six years from each transaction date. Connected records may need to be retained longer when an appeal, revision, other proceeding, or Chapter XIX investigation is involved: until one year after final disposal or the ordinary period, whichever is later.
Is a GST audit notice the same as a return scrutiny notice?
No. A section 65 audit uses FORM GST ADT-01, while return scrutiny discrepancies are communicated in FORM GST ASMT-10. A special audit under section 66 is another procedure, using FORM GST ADT-03 and findings in ADT-04. Check the form, provision, scope, and deadline stated in the communication.
Can GST records be kept electronically?
Yes. Electronic records are permitted, but maintain proper backups, ensure records can be restored within a reasonable period after loss, and be able to produce authenticated records in hard copy or a readable electronic format. Audit-trail and inter-linkage information may also be requested.
Does the law require a particular GST invoice book or software?
The rules permit manual as well as electronic records; they do not prescribe buying a particular invoice book, software package, or recordkeeping format. The records still need to meet applicable duties and be complete, accessible, and producible.
The Bottom Line
Keep a traceable record trail from each relevant invoice or source document through books and stock records to returns, tax payments, and ITC claims. Retain records for the statutory period, preserve connected records longer when proceedings require it, and use the actual notice to decide which evidence and deadline matter.
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