CGST Section 35: Maintaining Accounts and Other Records

Provisions under Section 35 of the CGST Act 2017 relating to “Maintaining Accounts and Other Records”:

Section 35: Maintaining Accounts and Other Records (CHAPTER VIII: ACCOUNTS AND RECORDS) [*1]

(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.

(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.

(3) The Commissioner may notify a class of taxable persons to maintain additional accounts or documents for such purpose as may be specified therein.

(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.

(5) Omitted [*2&3]

(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 [*4], as the case may be, shall, mutatis mutandis, apply for determination of such tax.

Notes (History of Amendments in Bare Text):

1. CGST Section 35 introduced vide GOI Notification dated 12/04/2017, followed with CBEC Notification 9/2017 on commencement date of 01/07/2017.

2. Proviso to sub-section (5) inserted vide Section 16 of the CGST (Amendment) Act, 2018, followed with Notification 2/2019 on commencement date of 01/02/2019. [*3]

3. Sub-section (5) (and proviso) omitted vide Section 110 of the Finance Act 2021, followed with Notification 29/2021 on commencement date of 01/08/2021. Please refer Notification dated 12/04/2017 and CGST (Amendment) Act, 2018 for text thereof before substitution.

4. In sub-section (6), the text “or section 74A” inserted after the text “section 73 or section 74”, vide Section 123 of the Finance Act (No. 2) 2024, followed with Notification 17/2024 on commencement date of 01/11/2024.