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CA Intermediate · Taxation · Accounts and Records

Rao Logistics, a registered transporter, is carrying out a business which includes the supply of goods on behalf of principals. Rao Logistics is also an owner or operator of a godown or warehouse. Which of the following statements best matches the GST requirement on the records to be maintained?

Owners or operators of godowns and warehouses, and every transporter, must maintain records of the consigner, consignee and other relevant details of goods, whether or not they are registered. The duty does not depend on exempt goods or on a consignment value limit.

  1. AOnly the owner of the goods needs to maintain records, and the warehouse owner has no obligation
  2. BThe owner or operator of a godown or warehouse and every transporter, irrespective of registration, must maintain records of the consigner, consignee and other relevant details of the goods handledCorrect
  3. CThe warehouse owner must maintain records only if the goods are exempt
  4. DA transporter need only keep records if the value of consignments exceeds Rs 50,000 each

Explanation

The Act requires every owner or operator of a warehouse or godown or any other place used for storage of goods, and every transporter, irrespective of whether registered or not, to maintain records of the consigner, consignee and other relevant details of the goods in the manner prescribed. Option A ignores this specific duty, option C adds a wrong condition on exemption, and option D adds a value limit that does not apply to this obligation.

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