Answer

1. F

   Facts

   Goods not accounted for in your books can be treated as supplied, and tax can be demanded on them. That is why daily records and stock counts matter.

2. P

   Provisions and law

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

   Analysis

   Sec 35(6) lets the officer determine tax on unaccounted goods as if supplied. Example: books show 200 bags of cement but 260 are found; the 60 extra bags may be treated as sold without tax, and tax and penalty can be demanded. Keep purchase bills for all stock, including goods from unregistered sellers.

4. C

   Conclusion

   1. 1Count physical stock at least monthly.
   2. 2Match it with the stock register.
   3. 3Record shortages, damages and samples with notes.
   4. 4Keep purchase bills for every lot of stock.

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