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CMA Final · Indirect Tax Laws and Practice · Accounts and Records

Kaveri Logistics, an unregistered goods transport operator, has branches in two States. Under Section 35(2) of the CGST Act and Rule 58 of the CGST Rules, which statement is correct?

The operator must maintain records of goods transported, delivered and stored in transit, along with the GSTIN of the registered consigner and consignee, for each of its branches. The obligation applies to transporters whether or not they are registered, so non-registration is no excuse.

  1. AIt need not maintain records because it is not a registered person
  2. BIt must maintain records of goods transported, delivered and stored in transit, with GSTIN of registered consigner and consignee for each branchCorrect
  3. CIt must maintain records only of the consignee, and only for the head office
  4. DIt must maintain records only if its turnover exceeds the registration threshold

Explanation

Section 35(2) applies to every transporter irrespective of whether registered or not. Rule 58(4)(a) requires records of goods transported, delivered and stored in transit with the GSTIN of registered consigner and consignee for each branch. An unregistered transporter must also enrol if not already registered.

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