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CA Intermediate · Taxation · Accounts and Records

Gupta Steels, a registered manufacturer in Ludhiana, has an annual aggregate turnover of Rs 3 crore and is not required to get accounts audited. Which of the following records is it specifically required to maintain under Rule 56 of the CGST Rules for goods?

A registered manufacturer must maintain records of production, inward and outward supplies, stock of goods, input tax credit availed, and output tax payable and paid. These are mandatory irrespective of whether accounts are audited, so keeping only invoices or sales registers is insufficient.

  1. AOnly a sales register, since stock records are optional for non-audited taxpayers
  2. BRecords of production or manufacture, inward and outward supply, stock of goods, input tax credit availed, output tax payable and paidCorrect
  3. COnly the tax invoices issued, with no stock records
  4. DOnly a monthly bank statement and GST returns

Explanation

Rule 56 requires a registered person to maintain records of production or manufacture, inward and outward supply of goods, stock of goods, ITC availed, output tax payable and paid, and other prescribed particulars. Stock and production records are not optional merely because audit is not required. Invoices alone or a bank statement do not satisfy the rule.

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