Is Inventory accounting is necessary for dealers below 1.5 cr turnover. Please provide answer for both cases regular and composition dealer.

Reply— As per rule 56(2) of CGST Rules, every registered person, other than a person paying tax under section 10, shall maintain the accounts of stock in respect of goods received and supplied by him, and such accounts shall contain particulars of the opening balance, receipt, supply, goods lost, stolen, destroyed, written off or disposed of by way of gift or free sample and the balance of stock including raw materials, finished goods, scrap and wastage thereof.

According to above provision, every registered person except composition dealers are required to maintain inventory accounting even if turnover is below 1.5 crore during financial year.