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CA Final · Indirect Tax Laws · Accounts and Records; E-way Bill

Sharma Textiles Pvt Ltd, a registered person in Surat, keeps all its books of account on cloud-based accounting software. During an inquiry, the proper officer asks it to produce the relevant records. Which of the following is consistent with the CGST Rules, 2017 on electronic records?

The registered person must produce the relevant records on demand, duly authenticated by him, either in hard copy or in any electronically readable format. Storing records electronically is no ground for refusal, and the rule does not limit production to hard copy.

  1. AIt may refuse to produce records because they are stored only in electronic form
  2. BIt must produce the relevant records, duly authenticated by it, in hard copy or in any electronically readable formatCorrect
  3. CIt must produce only a hard copy, because an electronic format is not accepted
  4. DIt may produce unauthenticated screenshots, as authentication is required only for hard copies

Explanation

The rules require a registered person maintaining electronic records to produce, on demand, the relevant records or documents duly authenticated by him. The format may be hard copy or any electronically readable format. The hard-copy-only option is wrong because both formats are allowed. The screenshot option is wrong because authentication is required.

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