Answer

1. F

   Facts

   Yes. Sec 35 requires true accounts of purchases, sales and stock, and GSTR-4 asks for inward supply details. Purchase records also support your turnover figures.

2. P

   Provisions and law

   • Sec 35(1), CGST Act 2017Every registered person must keep true and correct accounts at the principal place of business, including production, stock, supplies, ITC and tax paid.
   • Rule 62, CGST Rules 2017A composition taxpayer files CMP-08 by the 18th of the month after each quarter and GSTR-4 by 30 June after the year (Notification 12/2024-CT).
3. A

   Analysis

   Keep supplier bills, payment records and a simple stock book. GSTR-4 asks for purchases from registered and unregistered suppliers and reverse charge supplies. If purchases look far higher than sales, the officer may question suppressed turnover. Matching purchase and sale records keep you safe.

4. C

   Conclusion

   1. 1File all purchase bills monthly.
   2. 2Keep a simple stock register.
   3. 3Record purchases from registered and unregistered suppliers separately.
   4. 4Use these for GSTR-4.

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