All articlesCompliance

GST Audit Trail Requirements: What the MCA and GST Law Expect

Since April 2023, companies must use accounting software with an edit log. Here is what that means for your invoicing.

9 April 2026 5 min readBy SmartGST Team
GST Audit Trail Requirements: What the MCA and GST Law Expect

The rule

Companies (Accounts) Rules require accounting software that records an audit trail of every transaction, with edit logs and dates, which cannot be disabled.

Why it matters for GST

During assessment, officers compare invoice edits against filed returns. Unexplained changes to values or dates raise red flags.

What to capture

Who created, edited or deleted an invoice, client, payment or product; timestamps; before-and-after values.

Retention

Preserve records for 72 months from the annual return due date under Section 36 of the CGST Act.

Built in

SmartGST's Audit Trail logs every action per business and exports as CSV/Excel/PDF for auditors.

Try it on your next invoice

SmartGST Invoices automates GST calculation, HSN codes, reminders and GSTR reports. Free to start.

Create a free account

Keywords: audit trail accounting software · gst records retention. This article is general information, not professional tax advice.