5 records every business must keep (and for how long)

When the auditor calls, the bank asks for a statement, or the income-tax notice arrives, there is exactly one thing that saves you: your records. Here are the five sets of documents every Indian business should keep, organised, and how long to hold onto them.

1. Sales and purchase invoices

Every sale and every purchase — with a proper invoice number, date, HSN/SAC code, GSTIN and tax rates. If your turnover crosses ₹5 crore, e-invoicing becomes mandatory for B2B transactions, which makes this easier, not harder. Your invoices are the backbone of GSTR-1, and of your income, so they must tie out to your bank statements exactly.

2. Bank statements and the cash book

All bank statements, passbooks, deposit slips and loan documents, alongside a cash book that matches them. A monthly reconciliation — statement vs. books — is the single most useful habit in small-business accounting. It is also the first thing a lender asks for when you apply for a business loan.

3. Payroll records

Salary registers, PF and ESI challans, TDS deducted from salaries, Form 16 and attendance data. If you have even one employee, these are statutory records — the labour department and the tax department both expect them on demand. Keep every payroll month's challan and return, not just the summary.

4. GST records

Filed GSTR-1 and GSTR-3B returns, the input tax credit (ITC) register, debit/credit notes and e-way bills. Your ITC claim is only as strong as the purchase invoices behind it — the department can deny credit without matching documentation.

5. Statutory and business documents

Registration certificates (GST, MSME, Shops & Establishments), partnership deed or company incorporation papers, agreements with clients and suppliers, licences, and property documents. These are your identity as a business, and you will need them for bank accounts, tenders and loans.

How long to keep them

• Income tax: keep books and supporting records for at least 8 years — assessments can reach back that far.
• GST: records must be retained for 72 months (6 years) from the last date for filing the annual return.
• Payroll and statutory returns: 8 years is the safe rule here too; permanent documents (registration, deeds) forever.

The practical tip: scan everything. A cheap scanner plus cloud storage means one hard drive failure can't wipe out your audit trail — and your accountant will thank you at year-end.