register 1

[pankaj kumar]

sir please tell me about RG 1 & how to use this

[KASTURI SETHI]

RG 1 stock register is no more statutory record. Under Rule 10 of Central excise Rules, 2002, you can maintain own record for proper accountal of excisable finished goods. The entries regarding production, clearance and balance are to be made in columns on daily basis Separate entries are required for each product.On the basis this Central Excise Returns are to be filed with the department. You can also opt for RG1 stock register for your convenience as the columns of this register make the basis for proper accountal of excisable finished goods.

[Mahir S]

RG-1 REGISTER is stock book for excise manufacturing unit, which contains all details of manufacture, clearance and duty paid with value date wise.

RG 1 is a production register to be kept in the manufacturing unit. This is meant for finished Stock and is also called as stock book of finished stock. It contains the daily opening stock, production and clearance for home consumption, export or domestic sales, transfers etc. and closing stock. At the end of the month a summary has to be prepared to show the opening stock, production, clearance and closing stock and value of clearance with duty amount.

The Excise officials including Internal Audit, CERA party will verify the RG-1 Register kept in the Unit at the time of their visit. This need not be submitted to the department, since the entire details of the RG1 is entered in the Excise Return itself.

Moreover, the department has already clarified that the unit can have its own record with the same details as appearing in the RG1 register. Hence, it is up to the excise unit to have the RG1 or its own computer generated report duty signed with all the details of RG1.

[Mahir S]

Regarding use of RG-1 register, it is to be maintained date wise, for opening stock, quantity manufactured, quantity cleared on payment of duty / without payment of duty / closing stock...... amount of duty involved, invoice no and date.

All day to day entries relating to production are required to be entered at the end of each working day or following day. All excise invoices that are prepared for various clearances with/without payment of duty, local/export sales, and transfers/as such clearances are to be entered in the RG1 register.

The closing stock shown in the RG1 register should always tally with the physical stock of finished goods lying in the factory premises.

[Ganeshan Kalyani]

The stock details are utmost required for filing of excise return. Excise returns are self assessed based return I.e.the figures show in the return are considered to be correct by the department. Hence the stock statement based on which return is filed should be kept on record duly signed by the authorised signatory of a manufacturing unit. the stock in the statement and the physical stock will not tally as there is always difference between stock on record and actual. Therefore the difference after reconciliation should be adjusted in record by passing necessary entry and if need be reverse the cenvat credit. Further as a part of working for Tax audit in some companies the reconciliation of closing stock as at 31st March is carried out and necessary accounting entry is passed. This exercise helps a lot during departmental audit and with ease the audit can be get through on this point.

[YAGAY andSUN]

Dear Pankaj,

There is no RG-1 mentioned in the Central Excise Rules, 2002 rather it is known as Daily Stock Account (DSA). Rest has been clarified above by the Experts. It is required to be maintained on daily basis, even, if there is no production or despatch. In this scenarios NIL entry must be captured.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[DR.MARIAPPAN GOVINDARAJAN]

My article entitled RG-1 REGISTER has been published in TMI on 14.08.2013.

[KASTURI SETHI]

Sh. Marappan Govindarajan Ji,

Sir, Thanks for giving useful information on RG 1 through your Article.

AI Summary

Daily Stock Account maintenance ensures proper production, clearance and stock accounting for excise returns and audit verification. Maintenance of a Daily Stock Account (RG 1) is a non statutory stock record permitted under Rule 10, to be kept daily with product wise entries of opening stock, production, clearances (with/without duty, exports, transfers), invoice and duty details, and closing stock. The register supports self assessed excise returns, must be signed by an authorised signatory, be available for verification by officials and auditors, and any reconciliation differences should be adjusted in records, including reversal of cenvat credit if warranted.