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CA Intermediate · Taxation · Accounts and Records

Sundaram Traders, a registered person in Coimbatore, keeps its books of account and records at its principal place of business and also stores some stock at a godown in another district that has been declared as an additional place of business in the registration. Which of the following statements is correct as per the GST law on accounts and records?

A registered person must keep books of account and records at the principal place of business and at each additional place of business mentioned in the registration certificate. Records cannot be kept anywhere without declaration, and the godown does not replace the principal place.

  1. ABooks of account need to be kept only at the principal place of business, and the godown need not be mentioned in the registration
  2. BBooks of account must be kept at every place of business mentioned in the registration certificate, including the principal placeCorrect
  3. CBooks of account may be kept at any place in India without any intimation to the department
  4. DBooks of account need be kept only at the godown because goods are stored there

Explanation

Under the GST law, every registered person must keep and maintain at his principal place of business, as mentioned in the registration certificate, a true and correct account of the goods or services, and the records relating to each additional place of business are also to be kept at that place. Option A is wrong because additional places must be declared and records kept there too. Options C and D contradict the rule tied to places in the registration.

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