Answer

1. F

   Facts

   Rule 56 exempts composition taxpayers from keeping detailed stock accounts. You still need records of sales and purchases.

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 10, CGST Act 2017Composition levy for small taxpayers
3. A

   Analysis

   Rule 56(2) requires stock accounts from registered persons other than those paying tax under Sec 10. Composition dealers still record outward supplies for CMP-08 and GSTR-4, and inward supplies for GSTR-4 Table 4. Example: a composition sweet shop keeps a daily sales total and a purchase file, but need not keep item-wise stock. Keeping a basic stock count still helps at year end.

4. C

   Conclusion

   1. 1Keep daily sales totals with bill numbers.
   2. 2Keep all purchase invoices, including from unregistered sellers.
   3. 3Note reverse charge purchases separately.
   4. 4Do a simple year-end stock count.

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