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CA Intermediate · Taxation · Accounts and Records

Kaveri Logistics is a registered person whose aggregate turnover is Rs 3 crore. It maintains its books of account electronically. Which statement is correct as per the CGST Rules on accounts maintained electronically?

Accounts may be maintained electronically, authenticated by digital signature as required, and a backup of the books must be kept. Electronic maintenance is permitted, and records must still be produced to officers on request, so the second option is correct.

  1. AElectronic records are not acceptable; manual books are mandatory
  2. BRecords may be kept electronically, authenticated by a digital signature where required, and a backup of the books must be keptCorrect
  3. CElectronic records need not be produced to the tax officer on request
  4. DOnly the final profit and loss account may be kept electronically

Explanation

Records maintained in electronic form must be authenticated by a digital signature where the law requires, and a backup of the books of account must be kept in the manner prescribed. Manual books are not compulsory. Electronic records must be produced to officers on demand, so the other options misstate the position.

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