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CA Intermediate · Taxation · Accounts and Records

Kavita Enterprises is a registered person with a turnover of Rs 3 crore in every year so far. Which of the following must be included among the accounts it is required to maintain at its principal place of business under the CGST Act, 2017 and the Rules?

A registered person must maintain records of production or manufacture, inward and outward supplies of goods or services, stock of goods, input tax credit availed, output tax payable and paid, and other prescribed particulars. Partial records such as sales alone are not sufficient.

  1. AOnly the sales register and nothing else
  2. BProduction or manufacture of goods, inward and outward supply of goods or services, stock of goods, input tax credit availed, and output tax payable and paidCorrect
  3. COnly the records of exports made during the year
  4. DOnly the tax invoices issued, since purchases need not be recorded

Explanation

Section 35 requires records of production or manufacture, inward and outward supplies, stock, input tax credit availed, output tax payable and paid, and other prescribed particulars. The other options list only part of these and wrongly omit purchases or stock.

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