Answer

1. F

   Facts

   Record every purchase, even from unregistered sellers, with date, seller name, item, quantity and amount. You get no ITC on such purchases, but they explain your stock.

2. P

   Provisions and law

   • 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
   • Sec 35(6), CGST Act 2017Goods or services not accounted for can be treated as supplied and tax determined on them
3. A

   Analysis

   Rule 56 requires names and addresses of suppliers. Without a record, the stock you sell may look unexplained under Sec 35(6). Example: buying 5 quintals of onions from a farmer for ₹12,000 in cash; write a purchase voucher with the farmer's name, village, quantity and amount, and get it signed. Reverse charge applies only to notified items, so check if any of your purchases are covered.

4. C

   Conclusion

   1. 1Make a simple purchase voucher for each cash purchase.
   2. 2Note the seller's name, place, item, quantity and amount.
   3. 3Get the seller's signature or thumbprint where possible.
   4. 4Enter it in the purchase register.
   5. 5Check if reverse charge applies to that item.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.