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

Ganga Pharma Ltd keeps electronic records. An officer demands (i) the relevant purchase register and (ii) access to the files in which it is stored. The company supplies the register as an unauthenticated screenshot and gives the file passwords, but refuses to explain the codes used in the files, saying passwords are enough. Based on the CGST Rules text, which statement is correct?

The company has not complied fully. Records produced on demand must be duly authenticated by it, and for access to electronic files it must also explain codes where necessary and provide a sample print copy, besides passwords and file details.

  1. ABoth demands are fully met, since passwords alone give access
  2. BThe register must be duly authenticated by the company, and where necessary it must also explain the codes used and give a sample print copyCorrect
  3. COnly the screenshot is required, as the text allows any electronic form without authentication
  4. DThe company is bound only to maintain a back-up and need not produce anything on demand

Explanation

Production on demand requires records duly authenticated by the registered person, so an unauthenticated screenshot falls short. For file access, the rule also requires explanation for codes used, where necessary, and a sample print copy, not just passwords. The back-up duty is additional to, not a substitute for, these obligations.

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