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CA Intermediate · Taxation · Accounts and Records

Anand Constructions, a registered person, is a works contractor and is also a person liable to maintain accounts under CGST Rules. Which of the following is a specific requirement for such a works contractor under rule 56 of the CGST Rules?

A works contractor must maintain contract-wise accounts showing the names and addresses of the persons on whose behalf construction is undertaken, details of goods and services received for the contract, the suppliers' details and payments received. Merely keeping an invoice register or exempt supply accounts does not satisfy the rule.

  1. AMaintain separate accounts only for exempt supplies
  2. BMaintain account of the names and addresses of the persons on whose behalf the construction is undertaken, details of goods or services received for the contract, and payments receivedCorrect
  3. CMaintain account only of stock of goods held on the last day of each year
  4. DNo special account beyond the invoice register is needed

Explanation

A works contractor must keep separate accounts for each contract showing the names and addresses of the persons for whom the works are done, the description, value and quantity of goods or services received for the contract, the details of payments received and the names and addresses of suppliers. Accounts of only exempt supplies or only year-end stock are not what the rule prescribes.

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