Amended and updated notes on section 35 of CGST Act, 2017. Detail discussion on provisions and rules related to accounts and other records.
Chapter VIII (Sections 35–36) of the Central Goods and Services Tax Act, 2017 deals with the provisions related to accounts and records. Section 35 of CGST 2017 provides for accounts and other records.
Recently, we have discussed in detail section 34 (Credit and debit notes) of CGST Act 2017. Today, we learn the provisions of section 35 of Central GST Act 2017.
Section 35 of the Central Goods and Services Tax Act, 2017 has been notified by the Ministry of Finance vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. This notification was come into force from 1st July, 2017 i.e. the commencement date of section 35 is 1-7-2017.
| Name of Act | The Central Goods and Services Tax Act 2017 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Central Board of Indirect Taxes & Customs |
| Governing body | GST Council |
| Number of Chapters | 21 |
| Number of Sections | 174 |
| You are reading: | |
| Chapter No. | VIII |
| Chapter Name | Accounts and Records |
| Section No. | 35 |
| Section Name | Accounts and other records |
| Updated 2024 Edition | GST Law Book PDF |
Relevant Rules and Forms for GST Section 35:
- Rule 56: Maintenance of accounts by registered persons
- Rule 57: Generation and maintenance of electronic records
- Rule 58: Records to be maintained by owner or operator of godown or warehouse and transporters
- FORM GST ENR-01: Application for Enrolment under section 35(2)
- FORM GST ENR-02: Application for obtaining unique common enrolment number
- Rule 80: Annual return
- FORM GSTR-9: Annual Return FORM GSTR-9A: Annual Return (For Composition Taxpayer)
- FORM GSTR-9C: Reconciliation Statement
Section 35 of Central GST – Accounts and other records1
Section 35 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017.
Section 35(1) of CGST Act
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) of CGST Act
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) of CGST Act
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) of CGST Act
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) of CGST Act
Section 35(5): Every registered person whose turnover during a financial year exceeds the 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.
[Sub-section(5) of section 35 omitted w.e.f. 01.08.2021 by the Finance Act 2021 vide Notification No. 29/2021-Central Tax, dated 30.07.2021]
Section 35(6) of CGST Act
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, as the case may be, shall, mutatis mutandis, apply for determination of such tax.
- Section 35 of CGST Act 2017 shall come into force on 01.07.2017 vide Notification No. 9/2017-Central Tax, G.S.R. 658(E), dated 28.06.2017. ↩︎