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CA Intermediate · Taxation · Accounts and Records

Kavita Enterprises, registered in Jaipur, supplies goods to unregistered customers and issues no tax invoice for supplies. Under the CGST Rules, which statement about maintaining stock accounts is correct for a registered person other than one opting for composition?

Every registered person, other than a person with special treatment, must maintain a stock account showing opening stock, receipts, supplies and closing stock of goods, besides inward and outward supply records. Selling to unregistered buyers or being a trader does not exempt the person from this requirement.

  1. AOnly a purchase register is needed; stock records are required solely for manufacturers
  2. BStock account is required only if turnover exceeds Rs 5 crore
  3. CStock account showing receipt and disposal of goods, including opening and closing stock, must be maintained by every registered person who is not a composition person, in addition to production, inward and outward supply recordsCorrect
  4. DNo stock account is required if all supplies are to unregistered persons

Explanation

Rules require a registered person to maintain a stock account showing opening balance, receipts, supplies and closing balance of goods, along with inward and outward supply records. The requirement is not limited by customer type or a turnover threshold, nor limited to manufacturers. Supplying to unregistered persons does not remove the obligation.

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