Answer

1. F

   Facts

   You must keep accounts of what you buy and sell, your stock, ITC taken, and tax payable and paid. These are kept at your principal place of business.

2. P

   Provisions and law

   • Sec 35(1), CGST Act 2017Every registered person keeps true and correct accounts of production, stock, inward and outward supplies, ITC and output tax at the principal place of business
   • Rule 56, CGST Rules 2017Details of records: supplies, stock, advances, tax paid, ITC and names of suppliers and buyers, kept at each place of business
3. A

   Analysis

   Sec 35(1) lists production or manufacture, inward and outward supplies, stock, ITC availed and output tax. Rule 56 adds details like advances, names of suppliers and buyers, and tax paid. For a small trader this means a sales register, a purchase register, a stock record, a cash book and the bank statement. Example: a hardware shop records each bill in the sales register, each supplier invoice in the purchase register, and updates stock weekly.

4. C

   Conclusion

   1. 1Start a sales register with date, bill number, buyer, value, tax and payment mode.
   2. 2Start a purchase register with supplier GSTIN, invoice, value and tax.
   3. 3Keep a stock record of items in and out.
   4. 4Keep a cash book and download bank statements monthly.
   5. 5File all bills and invoices by month.

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