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CA Final · Indirect Tax Laws · Accounts and Records; E-way Bill

During an inspection, the proper officer asks Kaveri Foods Ltd, which maintains its books electronically, to produce its purchase records. The finance manager offers only a screenshot of a few entries, unsigned. Which statement best reflects the CGST Rules, 2017 on electronic records?

On demand, the registered person must produce the relevant records or documents, duly authenticated by him, either in hard copy or in any electronically readable format. Authentication applies whichever form is used, so an unsigned screenshot of a few entries does not satisfy the requirement.

  1. AThe records may be produced only in hard copy, never in an electronic format
  2. BThe registered person must produce, on demand, the relevant records or documents, duly authenticated by him, in hard copy or in any electronically readable formatCorrect
  3. CThe records need not be authenticated if produced in an electronically readable format
  4. DThe registered person may refuse production until a written order from the Commissioner is issued

Explanation

The rule says the registered person shall produce on demand the relevant records or documents, duly authenticated by him, in hard copy or any electronically readable format. Authentication is required in both forms, so an unsigned partial screenshot is inadequate. Option C is wrong as it drops the authentication requirement.

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