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CA Intermediate · Taxation · Accounts and Records

Under Rule 56 of the CGST Rules, 2017, which of the following is a requirement for a registered person who is a manufacturer of goods regarding accounts maintained?

A registered manufacturer must maintain monthly production accounts giving quantitative details of raw materials or services consumed, goods manufactured, and waste or by-products. Stock records are compulsory, not optional, and the duty does not depend on a turnover threshold or cover only dispatched finished goods.

  1. AMaintain monthly production accounts showing quantitative details of raw materials or services used, goods manufactured, and waste or by-productsCorrect
  2. BMaintain only a sales register; stock records are optional
  3. CMaintain accounts only if aggregate turnover exceeds Rs 5 crore
  4. DMaintain records only of finished goods dispatched

Explanation

Rule 56(3) requires a registered manufacturer to maintain monthly production accounts showing quantitative details of raw materials or services used in manufacture and quantity of goods so manufactured, including waste and by-products. Stock records are mandatory, and no turnover threshold applies. Limiting records to finished goods dispatched is incomplete.

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