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

Sri Balaji Logistics, a goods transporter, is not registered under the GST Act. Under the CGST Act and Rules, which statement about its record-keeping obligation is correct?

An unregistered transporter must still maintain records of consigner, consignee and other relevant details of goods, and must enrol on the common portal using FORM GST ENR-01, because the obligation applies irrespective of whether the person is registered.

  1. AIt need not maintain any records because it is unregistered
  2. BIt must maintain records of the consigner, consignee and other relevant details of the goods, and enrol on the common portal in FORM GST ENR-01Correct
  3. CIt must maintain records only if its turnover exceeds the registration threshold
  4. DIt must keep records only of goods stored in transit, not of goods delivered

Explanation

Section 35(2) requires every transporter, irrespective of whether registered or not, to maintain records of consigner, consignee and other relevant details. Rule 58(1) requires an unregistered such person to submit details in FORM GST ENR-01 to obtain an enrolment number. The turnover-based option is wrong as the duty applies irrespective of registration.

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