Skip to content

CA Intermediate · Taxation · Accounts and Records

Verma & Sons, a registered person in Nagpur, finds that some of its accounts and documents were destroyed in a fire at its additional place of business. Under section 35(5) of the CGST Act, 2017, what must it do?

The registered person must inform the jurisdictional authority in writing, in the prescribed form and within the prescribed time, about the loss of accounts or documents from fire or similar causes. The loss is not automatically waived and re-registration is not needed.

  1. ANothing, since destroyed records are automatically waived
  2. BInform the jurisdictional authority in writing within the prescribed time, in the prescribed formCorrect
  3. CWait for an audit notice and then explain the loss
  4. DRe-register under a new GSTIN

Explanation

Where accounts or documents are lost, stolen, destroyed or damaged by accident, fire or any other natural calamity, the registered person must inform the jurisdictional authority in the prescribed form and within the prescribed time. Waiting, ignoring or re-registering does not discharge this duty.

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