How long to keep invoices and records

The GST rule

Section 36 of the CGST Act requires every registered person to keep books of account and records for 72 months from the due date of furnishing the annual return for the year they relate to. If you are party to an appeal, revision or other proceeding, or under investigation, records relating to that matter must be kept for one year after it is finally disposed of, or for the 72-month period, whichever is later.

Records can be kept electronically, but they must be accessible, backed up and producible when asked. They are to be kept at your principal place of business as declared in registration, and at each additional place for records relating to it. This is general information, not tax advice.

Working out the date

The annual return GSTR-9 for a financial year is normally due on 31 December after the year ends (it can be extended). Counting 72 months from that due date:

Small taxpayers exempted from filing GSTR-9 should still count from the due date that would apply; ask your CA if unsure. Read GSTR-9 annual return for due dates.

Income-tax and company law periods

• Income-tax: the law sets a minimum period for keeping books and documents for those required to maintain accounts, and reassessment can reach back several years for larger amounts. The Income-tax Act, 2025 replaced the 1961 Act from April 2026, so confirm the current retention and reassessment periods on incometax.gov.in or with your CA.
• Companies: the Companies Act, 2013 requires books of account to be kept for at least eight financial years immediately before the current year, and longer if an investigation is ordered.
• LLPs and partnerships: follow their own law and partnership deed, plus the tax rules above.

Because the periods differ and can be extended by proceedings, a simple rule many CAs suggest is: keep everything for at least eight years, and keep anything under dispute until it is closed.

What counts as a record

Storing records sensibly

1. Paper: box by financial year and month, label the outside, keep in a dry place off the floor. Termites and monsoon damp destroy more records than any officer ever asks for.
2. Scans: scan purchase invoices as they come in; name files by date, party and number.
3. Accounting data: take regular backups of your Tally data, keep one copy off-site, and test that you can restore it. See backing up accounting data.
4. Email and WhatsApp: not a filing system. Save important PDFs into your own folders.
5. Index: a simple list of what is where, so someone other than the accountant can find a 2022 invoice.

Destroying old records safely

Once the retention period has passed and nothing is pending, old records can be destroyed. Before doing so, check with your CA that no assessment, appeal or notice is open for that year. Shred or pulp documents with GSTINs, bank details and signatures rather than selling them as scrap paper. Keep a short note of what was destroyed and when.

Annual records checklist

• Closed year's paper files boxed and labelled.
• Backup of the year's accounting data taken and verified.
• Returns, challans and acknowledgements downloaded from the GST portal.
• Notices and replies filed with the year.
• Years past the retention date reviewed for disposal.

Pair this with the year-end closing checklist.

Doing this with Tally and Cashflow OS

Tally remains your books of record, so its data and backups are what you retain. Cashflow OS keeps a synced copy of the companies open in Tally and lets you view reports for any financial year, or custom ranges across several years, and export them to Excel or PDF. That makes it quick to pull an old ledger or day book when an officer or auditor asks. It does not replace your Tally backups. See reports in Excel and PDF.