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CA Intermediate · Taxation · Accounts and Records

Roy & Sons, a registered wholesaler in Kolkata, has an aggregate turnover of Rs 4 crore in FY 2025-26. Its accountant says that being a small entity it need not maintain a stock register. Which statement best reflects the CGST provisions on accounts and records?

Every registered person dealing in goods must maintain stock records, whether trader or manufacturer, and must show the godowns or additional places where goods are stored. There is no turnover exemption, and issuing invoices does not replace maintaining a stock register.

  1. AStock register is required only for manufacturers, not traders
  2. BStock register is needed only when turnover exceeds Rs 5 crore
  3. CEvery registered person supplying goods must maintain stock of goods records, and goods stored at additional places must be shown with address of the godownCorrect
  4. DA stock register is optional if a tax invoice is issued for each sale

Explanation

Rule 56 requires every registered person (not only manufacturers) to maintain stock records, and the owner or operator of a godown or warehouse must also keep records of the goods handled. Registered persons must keep details of the godowns where goods are stored. No turnover threshold exempts a trader from stock records, and invoices cannot replace them.

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