The Central Government vide Circular No.23/23/2017-GST dated December 21, 2017 has clarified the issues w.r.t. maintenance of books of accounts by a principal or an auctioneer at each and every additional place of business related to stock of goods like tea, coffee, rubber etc. meant for auction.
Both the principal and the auctioneer are required to maintain the books of accounts relating to each and every place of business in that place itself as per the first proviso to Section 35(1) of CGST Act, 2017. However, in case of difficulties being faced in maintaining the books of accounts, it is clarified that they may maintain the books of accounts relating to the additional place(s) of business at their principal place of business instead of such additional place(s).
Further, such principal or auctioneer shall intimate their jurisdictional proper officer in writing about the maintenance of books of accounts relating to additional place(s) of business at their principal place of business.
However, this Circular is applicable only where auctioneer claims ITC in respect of the supply made to him by the principal before the auction of such goods and the said goods are supplied only through auction.