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CA Intermediate · Taxation · Accounts and Records

Ravi Agro Pvt. Ltd., a registered person with a turnover of Rs 3 crore, stores its books of account electronically. The proper officer, during an inspection, asks for the records. Which statement is correct under the CGST law on accounts maintained electronically?

Accounts may be maintained in electronic form authenticated by a digital signature, and the registered person must make them available to the proper officer on demand. Electronic maintenance is expressly permitted, and the presence of return data on the portal does not remove the duty to produce records.

  1. AElectronic records are not valid; only manual books are acceptable
  2. BRecords may be kept in electronic form, authenticated by a digital signature, and the person must make them available on demand to the officerCorrect
  3. CRecords may be kept electronically only if the business has more than one place of business
  4. DElectronic records need not be produced since the portal already holds the returns

Explanation

The law allows accounts and records to be kept in electronic form, authenticated by digital signature, and the registered person must produce them on demand. Manual-only is wrong because electronic maintenance is expressly permitted. Portal data does not replace the obligation to produce records.

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