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

Under the CGST Rules, 2017, where a registered person stores accounts and records electronically, which obligation applies?

On demand, the person must provide details of the files, their passwords, an explanation of codes used, and a sample print copy of the stored information. Back-up is mandatory, and records may be produced in hard copy or any electronically readable format.

  1. AHe need only produce records in hard copy and cannot supply them electronically
  2. BHe must, on demand, provide details of files, passwords, explanation for codes used and a sample print copy of the stored informationCorrect
  3. CElectronic back-up is optional if the records are on a cloud server
  4. DHe must keep records only until the officer verifies them once

Explanation

Rule 57(3) requires, on demand, details of files, passwords, explanation of codes and a sample print copy. Rule 57(2) allows production in hard copy or any electronically readable format, so the first option is wrong. Rule 57(1) requires proper electronic back-up so records can be restored, so back-up is not optional.

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