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CA Intermediate · Taxation · Accounts and Records

Mehta Industries, a registered manufacturer, is a person required to maintain accounts under Rule 56 of the CGST Rules, 2017. Which statement about its stock records is correct as per the Rules?

A manufacturer must keep records of production, inward and outward supplies, stock and ITC, and an item-wise stock register showing opening balance, receipts, supplies, goods lost, stolen, destroyed or written off, and the closing balance. A monthly total alone is insufficient.

  1. AIt must maintain a stock register only for goods imported, not for goods manufactured
  2. BIt must maintain records of production or manufacture, inward and outward supply, stock of goods and ITC availed, with stock register details of each item, including opening balance, receipt, supply, goods lost, stolen, destroyed or written off, and the balanceCorrect
  3. CIt need only maintain a monthly total of stock without item-wise details
  4. DIt is exempt from keeping stock records if aggregate turnover is below the registration limit

Explanation

Rule 56 requires a registered person to keep records of production or manufacture, inward and outward supply of goods or services, stock of goods, input tax credit availed, output tax payable and paid, and other particulars. The stock register must show details of opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample, and the balance, with item-wise particulars such as description and value. Option C is wrong because item-wise details are mandatory.

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