Section 35 of CGST Act

Accounts and Other Records

 

 

• See rule 56 to 58 and Form Nos. GST-ENR 1, GST-ENR 2, GSTR-9, GSTR- 9A to GSTR- 9C of the CGST rules, 2017.

 

• Enforced w.e.f. 1-7-2017.

 

Section 35(1)

 

Every registered person shall keep and maintain,

at his principal place of business, as mentioned in the certificate of registration,

a true and correct account of —

a. production or manufacture of goods;

b.  inward and outward supply of goods or services or both;

c. stock of goods;

d. input tax credit availed;

e. output tax payable and paid; and

f. such other particulars as may be prescribed:

 

Provided that where more than one place of business is specified in the certificate of registration,

the accounts relating to each place of business shall be kept at such places of business:

 

Provided further that the registered person may

keep and maintain such accounts and other particulars

in electronic form in such manner as may be prescribed.

 

Section 35(2)

 

Every owner or operator of warehouse or godown or any other place used for storage of goods and every transporter,

irrespective of whether he is a registered person or not,

shall maintain records of the consigner, consignee and other relevant details of the goods in such manner as may be prescribed.

 

Section 35(3)

 

The Commissioner may notify a class of taxable persons

to maintain additional accounts or documents

for such purpose as may be specified therein.

 

Section 35(4)

 

Where the Commissioner considers that

any class of taxable person is not in a position to keep and maintain accounts

in accordance with the provisions of this section, he may,

for reasons to be recorded in writing,

permit such class of taxable persons

to maintain accounts in such manner as may be prescribed.

 

Section 35(5)

 

Every registered person

whose turnover during a financial year

exceeds the CHAPTER VIII ACCOUNTS AND RECORDS 66 prescribed limit shall get his accounts audited by a Chartered Accountant

or a cost accountant and shall submit a copy of the audited annual accounts,

the reconciliation statement under sub-section (2) of section 44 and such other documents in such form and manner as may be prescribed:

 

Provided that nothing contained in this sub-section shall apply to any department of the Central Government or a State Government or a local authority, whose books of account are subject to audit by the Comptroller and Auditor-General of India or an auditor appointed for auditing the accounts of local authorities under any law for the time being in force.

 

Omitted by Finance Act 2021, w.e.f. 1-8-2021.

 

Section 35(6)

 

Subject to the provisions of clause (h) of sub-section (5) of section 17,

where the registered person fails to account for the goods or services or both in accordance with the provisions of sub-section (1),

the proper officer shall determine the amount of tax payable

on the goods or services or both that are not accounted for,

as if such goods or services or both had been supplied by such person and

the provisions of section 73 or section 74, or Section 74A, as the case may be, shall, mutatis mutandis, apply for determination of such tax.

 

{Inserted by Finance Act, 2024, w.e.f. 1-11-2024}