Skip to content

CA Intermediate · Taxation · Accounts and Records

Sundaram Traders, a registered dealer in Coimbatore, keeps its books of account at its godown in Tiruppur, which is not the principal place of business but has been declared in the registration certificate as an additional place of business. Which statement about its compliance under the GST accounts and records rules is correct?

The books may be kept at the Tiruppur godown, because GST law requires registered persons to maintain accounts at the principal place of business and at every additional place of business declared in the registration, and the godown has been so declared.

  1. AThe books must be kept at the principal place only, and keeping them at the godown is a violation
  2. BThe books may be kept at the godown because every place where records are kept must be mentioned in the registrationCorrect
  3. CThe books may be kept at any place without being mentioned in the registration
  4. DThe books can be kept only at the registered office of the proprietor's residence

Explanation

Under section 35 of the CGST Act, every registered person must keep accounts at the principal place of business and at each additional place of business mentioned in the registration. Since the Tiruppur godown is declared, keeping books there is valid. Option A wrongly insists on the principal place only.

Did you get it right without looking?

One question tells you little. A timed set on Accounts and Records shows your real accuracy, how long you take and where you lose marks.

Practise Accounts and RecordsFree diagnostic mock

More Accounts and Records questions