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CA Intermediate · Taxation · Accounts and Records

Meera Textiles, a registered supplier in Surat, keeps its books of account at its godown in Navsari, which is not its principal place of business, though both places are declared in its registration. Which statement about where the books of account must be kept is correct under the CGST Act, 2017?

Books of account may be kept at the principal place of business and also at any other place, provided every place where they are kept is declared in the registration. Since Navsari is declared, Meera Textiles complies with the law.

  1. ABooks must be kept only at the principal place of business; keeping them at any other place is never allowed
  2. BBooks may be kept at the principal place of business or at the additional place where they are kept, provided every such place is mentioned in the registrationCorrect
  3. CBooks may be kept at any place in India without declaring it in the registration
  4. DBooks must be kept at the place of the latest supply made

Explanation

The registered person must keep accounts at the principal place of business. If kept at more than one place, all such places must be mentioned in the registration. Navsari is declared, so the arrangement is valid. Option A is wrong because other declared places are permitted.

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