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

Mehta Logistics, an unregistered goods transporter, operates from two branches. Under the CGST Rules, 2017, which statement about its record keeping is correct?

The transporter must keep records of goods transported, delivered and stored in transit, with the GSTIN of the registered consigner and consignee, for each branch. Section 35(2) applies to transporters whether or not they are registered, and rule 58(4)(a) prescribes the details.

  1. AIt need not keep records as it is unregistered
  2. BIt must keep records of goods transported, delivered and stored in transit, with the GSTIN of registered consigner and consignee, for each branchCorrect
  3. CIt must keep records only of consignees, not consigners
  4. DIt must keep records only for the head office

Explanation

Section 35(2) applies to transporters irrespective of registration. Rule 58(4)(a) requires records of goods transported, delivered and stored in transit along with the GSTIN of the registered consigner and consignee for each branch. Unregistered status gives no exemption, so option one is wrong.

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