GST impact on Excess Stocks Account booking(Physical stock is excess then books)

[Prem Choudhary]

Dear Expert

please advice gst impact on following query:-

In physical verification of stock(Raw materials) it was found that the physical is excess over books. please advice on:-

1. if excess stock account for in books, what are consequences in GST ? and

2. if supply of stock was made from sister Concern unit then, GST consequences ?

AI Summary

Discussion on GST Stock Discrepancies: Experts Warn of Penalties Under Sections 56, 57, 125, and 122 of CGST Act A forum discussion addresses the GST implications of excess physical stock compared to book records. An expert highlights that improper record maintenance can lead to penalties under Sections 56, 57, 125, and 122 of the CGST Act. Another participant argues that discrepancies are due to ongoing consumption and normal loss, asserting that records are maintained in SAP. Despite this, the expert insists on the importance of rectifying errors to avoid penalties, even if there's no revenue loss. Another contributor warns that discrepancies could prompt deeper scrutiny by authorities, emphasizing the need for reconciliation to comply with GST laws.