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CA Intermediate · Taxation · Accounts and Records

Gupta Steel Ltd. has an annual aggregate turnover of Rs 4 crore and is a registered person. Which of the following is a statement about the audit or accounts requirement that is correct under the CGST Act as it applies to such a person?

Every registered person must keep accounts of production, inward and outward supplies, stock of goods, input tax credit availed and output tax payable and paid. This applies irrespective of the turnover limit, and the mandatory GST audit requirement no longer applies.

  1. AIt must get its accounts audited by a chartered accountant and furnish a reconciliation statement along with the annual return every year, whatever the turnover
  2. BIt must mandatorily maintain the accounts in the manner prescribed, including stock, production, inward and outward supply, input tax credit availed and output tax payable and paidCorrect
  3. COnly a person with turnover above Rs 5 crore needs to keep records of stock of goods
  4. DIt need not keep any stock register because a stock register is mandatory only for composition taxpayers

Explanation

Every registered person must maintain accounts of production or manufacture of goods, inward and outward supply of goods or services, stock of goods, input tax credit availed, output tax payable and paid, and other prescribed particulars. Mandatory GST audit by a chartered accountant was removed from the law with effect from FY 2020-21, so option A is wrong. Options C and D invent turnover or composition limits for stock records.

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