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CA Intermediate · Taxation · Accounts and Records

Verma Logistics, a registered person, wants to maintain its accounts electronically. Which statement is correct under Section 35 of the CGST Act, 2017?

Under the CGST law a registered person may keep books of account either manually or electronically, and electronic records must be authenticated in the prescribed manner, such as by digital signature. Prior permission from the Commissioner is not required.

  1. AAccounts may be maintained in electronic form, but must be authenticated in the manner prescribedCorrect
  2. BElectronic accounts are not allowed; only manual books are valid
  3. CElectronic accounts are allowed only after prior approval of the Commissioner
  4. DElectronic accounts need no authentication but must be printed monthly

Explanation

The law permits accounts to be kept in manual or electronic form, and electronic records must be authenticated by digital signature as prescribed. No prior approval of the Commissioner is needed, and monthly printing is not mandated.

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