Skip to content

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

Kaveri Textiles Pvt Ltd, a registered person, keeps its accounts and records in electronic form on a cloud-based ERP. Its server crashes due to a flood at the data centre. Under the electronic records rule in the CGST Rules, 2017, what must the company have ensured beforehand?

The company must have maintained and preserved a proper electronic back-up of its records, so that after destruction through accidents or natural causes, such as a flood, the information can be restored within a reasonable period of time. No filing of hard copies or officer approval is required.

  1. AA proper electronic back-up preserved so that the information can be restored within a reasonable period of timeCorrect
  2. BA printed hard copy of every record, filed monthly with the jurisdictional officer
  3. CA back-up stored only at the principal place of business on the same server
  4. DPrior approval from the proper officer for the electronic storage system

Explanation

The rule requires proper electronic back-up of records, maintained and preserved so that, if records are destroyed by accidents or natural causes, the information can be restored within a reasonable period. The rule does not require monthly hard copies or officer approval. A back-up on the same server would not allow restoration after the server is destroyed.

Did you get it right without looking?

One question tells you little. A timed set on Accounts and Records; E-way Bill shows your real accuracy, how long you take and where you lose marks.

Practise Accounts and Records; E-way BillFree diagnostic mock

More Accounts and Records; E-way Bill questions