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CA Intermediate · Taxation · Accounts and Records

Ravi Steel Ltd, a registered manufacturer in Ranchi, does not have audited accounts requirements under any law other than GST. Its turnover in 2024-25 was Rs 6 crore. Which statement is correct about its accounts and records under GST?

Ravi Steel must keep production, stock, inward and outward supply records, an account of ITC availed and tax payable and paid, and a record of advances received, paid and adjusted. The requirement is not limited by turnover, and electronic maintenance is allowed.

  1. AIt must maintain a separate account of advances received, paid and adjusted against supply, and of tax payable, paid and ITC availed, besides stock and production recordsCorrect
  2. BIt need maintain only tax invoices, as other records are for companies above Rs 20 crore
  3. CIt may maintain records only in manual form; electronic records are not permitted
  4. DIt need not keep records of advances because advance tax is not payable on goods

Explanation

Rules require records of production or manufacture, inward and outward supply, stock, input tax credit availed, output tax payable and paid, and an account of advances received, paid and adjustments, besides other prescribed particulars. Records may be kept electronically, and no turnover threshold exempts a manufacturer from them. Hence only the first statement is correct.

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