Chapter VIII - Accounts and records
Section 35
Section 35: Accounts and other records
Section 35 requires registered persons to keep true and correct GST records of production, inward and outward supplies, stock, input tax credit and tax payable or paid.
On this page
Need advice on Section 35?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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. 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.
(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.
Introduction
Records normally belong at the principal place of business stated in the registration certificate; records for multiple registered places are kept at the respective places. Electronic maintenance is possible in the prescribed manner. Warehouse operators and transporters also have record duties even when unregistered.
Key takeaways
Keep the core GST ledgers
Production, supplies, stock, ITC and output tax must be recorded accurately, together with prescribed particulars.
Place of business matters
The Act links record location to the registration certificate and each additional registered place.
Warehouse and transporter duties are broader
Owners/operators of storage places and transporters keep consignor, consignee and goods records regardless of their own registration status.
Unaccounted supplies can lead to tax determination
Under subsection (6), the officer may determine tax as if unaccounted goods or services were supplied, subject to the section's and demand provisions' conditions.
Registered-person records
Maintain a true and correct account of production/manufacture, inward and outward supplies, stock, ITC and output tax. Check current Rules for prescribed supporting particulars and electronic-record manner.
Where records are kept
Keep accounts at the principal place shown in the registration certificate. If multiple places are specified, keep the accounts relating to each at that place, subject to the statutory electronic option and Rules.
Storage and transport records
Warehouse/godown operators and transporters have consignor, consignee and goods-record requirements even if they are not registered. Reconcile goods movements to customer and supplier records.
Non-compliance and special directions
The Commissioner may require additional documents for notified classes or allow an alternative manner for a class unable to keep ordinary records. Unaccounted goods or services can trigger tax determination under subsection (6), using section 73, 74 or 74A as applicable.
Practical checklist
Do
- Reconcile books, stock and GST returns.
- Identify record location for every registered place.
- Maintain consignment evidence where operating storage or transport.
Avoid
- Assume an unregistered warehouse or transporter has no GST record duties.
- Treat unaccounted stock as a harmless bookkeeping issue.
Frequently asked questions
Must a transporter keep records if unregistered?
Yes. Section 35(2) applies to every transporter and specified storage operator irrespective of registration.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026