CGST Section 145 — Admissibility of micro films, facsimile copies of documents and computer printouts as do

Act Section 145 essentially makes it easier to use modern forms of documentation like microfilm, faxes, and computer printouts as valid evidence under GST law, removing the need to always produce the original physical document. This promotes efficiency and acknowledges the increasing reliance on digital record-keeping in businesses.

Section 145 applies to all taxpayers registered under the Goods and Services Tax (GST) Act, 2017, as well as to GST officers, auditors, and any other individual involved in proceedings under the Act. It comes into play whenever a taxpayer or the department needs to present documentary evidence during assessments, audits, investigations, appeals, or any other GST-related process. The section allows for the acceptance of copies or reproductions of original documents, provided certain conditions are met.

Here's a breakdown of the key conditions and exceptions:

• Acceptable Document Forms: The section specifically mentions microfilm, facsimile copies (faxes), computer printouts of documents, and electronically stored information (including hard copies) as acceptable forms of documentation. This covers a wide range of modern document formats.
• Deemed as Documents: These alternative document forms are "deemed to be a document" under the GST Act and rules. This means they hold the same legal weight as original physical documents.
• Admissibility as Evidence: These documents are admissible as evidence in any GST proceeding "without further proof or production of the original." This significantly simplifies the process of presenting evidence. You don't need to locate and present the original physical invoice, for example, if you have a clear and verifiable computer-generated copy.
• Direct Evidence Required: The evidence derived from these document copies must be the kind of evidence that would be admissible if presented in its original, direct form. This means that hearsay or other inadmissible forms of evidence don't become admissible simply because they're presented as a microfilm or computer printout.
• Certification Requirement: Sub-section (2) introduces a crucial requirement. If you want to present a statement as evidence under this section, you must provide a certificate that:
  • Identifies the document containing the statement and describes how it was produced.
  • Provides details about any device involved in the production of the document, especially if it was produced by a computer. This helps establish the authenticity and reliability of the document. The certificate should show that the document was indeed produced by a computer or another recognized process.
• Content of the Certificate: The certificate is considered evidence of the matters stated within it. The law allows the person providing the certificate to state matters "to the best of the knowledge and belief," acknowledging that absolute certainty might not always be possible.

Let's consider some practical examples for business owners:

• Example 1 (Invoices): Instead of keeping piles of paper invoices, you scan them and store them as PDF files on your computer. During a GST audit, you can present printed copies of these PDFs as evidence of your input tax credit claims, provided you also provide a certificate stating how these invoices were scanned and printed.
• Example 2 (Bank Statements): You need to prove a particular payment was made. Instead of retrieving the original bank statement from years ago, you print a copy from your online banking portal. You can submit this printout as evidence, along with a certificate explaining that the document is a computer-generated statement from your bank's online portal.
• Example 3 (Credit Notes): A supplier sends you a credit note via fax. You can use a copy of the faxed credit note as evidence to reduce your output tax liability, accompanied by a certificate confirming that it's a facsimile copy of the original document.

Important Considerations

While Section 145 simplifies the process, it's crucial to maintain proper documentation practices. Ensure that your digital records are accurate, securely stored, and readily accessible. Implement procedures for creating and maintaining the required certificates for any documents you might need to present as evidence. Failure to meet these requirements could lead to the rejection of your evidence and potential penalties.

As of the latest updates to the CGST Act, there haven't been any significant amendments to Section 145. This section remains a valuable tool for businesses looking to streamline their documentation processes and leverage digital record-keeping under GST. However, taxpayers should stay informed of any new circulars or clarifications issued by the CBIC regarding the interpretation and application of this section.