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CA Intermediate · Taxation · Accounts and Records

Nair Logistics, a registered person, owns a goods transport vehicle fleet and also provides GTA services. Which of the following correctly reflects the accounts and records the CGST Rules require a registered person to maintain at the principal place of business?

A registered person must maintain records of production or manufacture, inward and outward supplies of goods or services, stock, input tax credit availed, output tax payable and paid, and other prescribed particulars. Records limited to sales or stock alone would be incomplete under section 35.

  1. AOnly a production register and a sales ledger
  2. BProduction or manufacture of goods, inward and outward supply of goods or services, stock of goods, input tax credit availed, output tax payable and paid, and other prescribed particularsCorrect
  3. COnly the invoices issued and the tax paid
  4. DOnly the stock register, since service-related records need not be kept

Explanation

Section 35(1) requires records of production or manufacture of goods, inward and outward supply of goods or services or both, stock of goods, input tax credit availed, output tax payable and paid, and such other particulars as prescribed. Limiting records to sales or stock leaves out ITC and services, which makes the other options incomplete.

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