Last updated: 23 October 2026
Most stock registers I see in small shops fail on one line: goods that left without a sale. A carton damaged in the godown, a sample handed to a dealer, a festive gift box. If those sit in the “outward” column with sales, your closing stock looks fine, but the GST side doesn’t, because section 17(5)(h) blocks ITC on goods lost, stolen, destroyed, written off or given away as gifts or free samples.
So the format below keeps loss and gift as separate movement types, maps the Rule 56(2) stock-account particulars, and includes a worked FIFO valuation in ₹. The Excel, Word and PDF files are educational templates, not a prescribed CBIC blank or any bank’s official annexure.
What to get right in your stock register
- Give losses, write-offs and gifts/free samples their own columns. Bury them inside outward sales and your stock may tally, but your GST won’t: section 17(5)(h) blocks ITC on exactly these goods.
- One line every item must pass: Closing = Opening + Inward − Outward − Adjustments. If it doesn’t, fix that row before you trust the balance.
- Value closing stock at cost (FIFO or weighted average, lower of cost and NRV under AS 2), never at MRP. LIFO is not allowed.
- Count the shelf at least once a month. If the count is off, add a correcting entry instead of overwriting the old one.
- Have a bank CC limit? Your stock statement has to match this register, and RBI generally wants it no older than three months. The free files are practice templates, not a government form or a bank annexure.
Educational information only. This page is general guidance for Indian small businesses, traders, storekeepers and students. It is not tax, legal or financial advice and it is not a substitute for a chartered accountant or current official sources. Rules and forms change; verify before you file, pay or sign.
Download the stock register format (Excel, Word, PDF)
The free files include blank layouts, a filled ₹ FIFO packet and an Excel register with closing-quantity formulas. Use them to practise opening–inward–outward–closing discipline — then keep your real invoices, delivery challans and GRNs separately.
Formulas for closing stock and reorder alerts: ChatGPT for Excel prompts.
Excel: entry and calculations
An Items master, a chronological Register (with loss / write-off / gift movement types), a filled FIFO Worked sheet, an educational Stock Statement Summary and a Sources sheet. Download Excel (.xlsx)
Word: editable print layouts
Blank item-wise ledger page, blank monthly summary, blank physical verification sheet, filled FIFO example pages and a checklist. Word totals are manual. Download Word (.docx)
PDF: printable reference packet
The same packet in a fixed layout for printing or checking the example. It is not an interactive form. Download PDF (.pdf)
These are free ScaleSaathi educational templates, not prescribed government forms and not any bank’s official annexure. The example business (Mehra Traders), item (Aarohi LED Bulb 9W) and document numbers are fictional. No bank account, GSTIN, signature or proof of payment has been invented. Keep your real source documents separately.
The workbook is intentionally limited to quantity discipline and educational valuation. It does not prepare GST returns, replace a delivery challan for goods movement, replace a ledger for account balances, or provide a protected multi-user audit trail.
What is a stock register format? (and what it is not)
A stock register (स्टॉक रजिस्टर / stock book / inventory register) is the book — paper or spreadsheet — where you keep item-wise quantities: how many units you opened with, received, supplied, lost, wrote off, gave as samples, and should still hold. Shopkeepers also call the same idea a stock book or stock ledger for quantities. Accountants may keep a separate stock ledger for values; this guide’s “stock register format” is the practical SMB quantity register that can also carry rates for educational valuation.
A useful stock register format therefore answers four questions for every item:
- What was the opening quantity?
- What was received (inward) and supplied (outward), with a document reference?
- What was adjusted (lost, stolen, destroyed, written off, gift or free sample)?
- What is the closing quantity — and does it match a physical count?
What a stock register format is not
| Not this | Why |
|---|---|
| A delivery challan | Challan is the movement document when goods leave without (or before) a tax invoice; the register records the quantity effect of that movement |
| A purchase order | PO is the buyer’s order; inward stock usually follows GRN / purchase invoice, not the PO alone |
| A ledger | Ledger holds account-wise ₹ balances (parties, sales, GST); stock register holds item-wise quantities (and optional values) |
| A cash book | Cash book tracks cash and bank money; it does not prove how many bulbs are on the shelf |
| A bank stock statement | A statement is an as-on report for Drawing Power; the register is the running book that should feed that report |
| A prescribed government blank form | GST requires certain particulars in stock accounts; it does not issue one universal printable “stock register form number” for SMBs |
If goods are leaving the godown, start with the delivery-challan guide for the document. If you need to know what each customer owes, use the ledger guide. If you need to know how many units remain, you need a stock register.
Columns that make a stock register useful (GST stock-account fields)
GST-registered businesses dealing in goods must keep a true and correct account of stock of goods under CGST section 35. Rule 56(2) of the CGST Rules sets out the particulars that stock accounts should contain for registered persons other than those paying tax under the composition scheme (section 10). GST does not prescribe one compulsory printable template — your Excel, Word or software layout is a practical way to capture those particulars.
Core quantity particulars (Rule 56(2) — not a printable government blank)
| Column | Purpose |
|---|---|
| Opening balance | Quantity at the start of the period (or brought forward) |
| Receipt (inward) | Goods received — purchases, job-work returns, transfers in |
| Supply (outward) | Goods supplied — sales, job-work issues, transfers out |
| Lost / stolen / destroyed | Quantity removed other than by supply |
| Written off | Quantity written off (e.g. unsaleable damage) |
| Gifts / free samples | Quantity disposed of without sale consideration |
| Closing / balance | Remaining quantity, including raw materials, finished goods, scrap and wastage where relevant |
Practical columns our downloads add
| Column | Purpose |
|---|---|
| Date | Sequence of movements |
| Item code / name | Which SKU moved |
| Doc no. | Invoice, challan, GRN, credit note, damage note |
| Party / location | Supplier, customer, godown, job worker |
| Unit | Pcs, kg, L — never mix units on one item |
| Rate ₹ / value ₹ | Optional for valuation and bank statements |
| HSN (optional) | On the item master, not every movement row |
| Reorder level | Soft alert when closing qty is low |
| CHECK / REORDER flags | Excel hygiene — do not ignore negatives |
Doc ref, party/location, HSN, reorder and value columns are ScaleSaathi educational practice — useful for SMB control, not fields Rule 56 lists as a compulsory printable template.
Composition note: Rule 56(2)’s detailed stock-account particulars apply to registered persons other than section 10 composition payers. Composition businesses still have other s.35 / Rule 56 duties — ask a CA; do not read the carve-out as “no records at all.” Manufacturers, service suppliers and works-contract persons have additional quantitative accounts under Rule 56(12), 56(13) and 56(14) respectively; this guide does not expand into a production or works-contract manual.
Opening, inward, outward, closing — worked quantity walkthrough
Do the arithmetic before valuation. For any item:
Closing qty = Opening + Inward − Outward − Adjustments
where Adjustments are lost/stolen/destroyed + written off + gifts/free samples (as you record them).
Fictional walkthrough — Aarohi LED Bulb 9W (AR-LED9), Mehra Traders, September 2026
| Step | Qty |
|---|---|
| Opening (1 Sep) | 100 |
| + Inward (BILL-51 + BILL-58) | 350 |
| − Outward (INV-201 + INV-205) | 280 |
| − Written off (DMG-01) | 10 |
| Closing | 160 |
Check: 100 + 350 − 280 − 10 = 160. Every row in a tidy register should leave this identity true for the item. Our Excel Items sheet recalculates closing qty from the Register with green formulas — do not overwrite them.
Link every movement to a document
A stock register without document references becomes an argument. Own the distinction: the challan moves goods; the register records the stock effect.
| Source document | Typical stock effect | ScaleSaathi guide |
|---|---|---|
| Purchase invoice / bill | Inward | GST invoice format |
| GRN / goods receipt (after purchase order) | Inward | PO guide owns the order; register owns the qty |
| Tax invoice (sale) | Outward | GST invoice format |
| Delivery challan | Outward (or job-work issue) when goods leave without / before invoice | Delivery challan format |
| Credit note / sales return | Often Inward (return) or reverse of prior outward | Credit note format |
| Damage / write-off note | Written off or Lost/destroyed | Internal note + register row |
| Sample / gift issue slip | Gift / free sample | Internal note + register row |
Why challan ≠ stock book: a delivery challan is evidence that goods moved on a date to a party or job worker. The stock register is the continuous item ledger that must go down (or transfer location) when that challan is issued. Keep both.
FIFO valuation example in ₹
Quantity first; value second. For books, inventories are generally carried at the lower of cost and net realisable value (AS 2 para 5). Under AS 2 para 16 (and similarly Ind AS 2), cost of interchangeable items is assigned using FIFO or weighted average. LIFO is not permitted under AS 2 / Ind AS 2. Ask your CA which method your accounts use and stay consistent. Rates below are purchase cost excluding recoverable GST when ITC is claimed — illustration only.
Fictional item and layers
Mehra Traders · Aarohi LED Bulb 9W · September 2026
| Date | Event | Doc | Qty | Rate ₹ | FIFO layer note |
|---|---|---|---|---|---|
| 01-Sep | Opening | OPN | 100 | 40 | Layer A: 100 @ ₹40 |
| 05-Sep | Purchase | BILL-51 | 200 | 42 | Layer B: 200 @ ₹42 |
| 10-Sep | Purchase | BILL-58 | 150 | 45 | Layer C: 150 @ ₹45 |
| 12-Sep | Sale | INV-201 | 180 | — | Issues 100 @ ₹40 + 80 @ ₹42 = ₹7,360 |
| 15-Sep | Written off | DMG-01 | 10 | — | Issues 10 @ ₹42 = ₹420 |
| 18-Sep | Sale | INV-205 | 100 | — | Issues 100 @ ₹42 = ₹4,200 |
Closing under FIFO: 10 pcs @ ₹42 + 150 pcs @ ₹45 = 160 pcs · ₹7,170
Checks:
- Qty: 100 + 200 + 150 − 180 − 10 − 100 = 160 ✓
- Cost: goods available ₹19,150 − closing ₹7,170 = issues ₹11,980 (7,360 + 420 + 4,200) ✓
The Excel FIFO Worked sheet and the Word/PDF Part D show the same numbers.
Short weighted-average contrast
The same 450 pcs cost ₹19,150 in total, so a simple average is about ₹42.56 per piece before issues. Many Indian SMBs use weighted average (periodic or perpetual) instead of FIFO — see competitor-style average examples elsewhere. ScaleSaathi teaches FIFO layers here because few format pages do. Pick one method and stay consistent; ask your CA. Do not value closing stock at MRP for books.
Physical verification and corrections
At least monthly (or as your CA / bank requires), count physical stock and compare to book qty.
| Book qty | Physical qty | Action |
|---|---|---|
| Equal | Equal | Tick and move on |
| Book higher | Shortage | Investigate theft, unposted sales, unit errors; post Lost/stolen/destroyed or correcting outward with a doc ref |
| Book lower | Excess | Investigate unposted inward or returns; post correcting Inward with a doc ref |
Correction discipline (Rule 56(8) habit): do not erase or silent-overwrite. On paper, score out the incorrect entry under attestation and record the correct entry. In Excel, add a correcting row (and keep an edit history if several people use the file). Electronic records may be kept under Rule 56(15) (digital signature authentication) with backup under Rule 57. Spreadsheet files are a practical start — they are not by themselves a full electronic audit log.
Unexplained stock can attract tax determination under CGST s.35(6) (tax as if supplied, with ss.73 / 74 / 74A applying as the case may be) — keep the register honest and ask a CA if counts do not reconcile. Separate loss / gift columns also matter because s.17(5)(h) blocks ITC on goods lost, stolen, destroyed, written off or disposed of as gifts or free samples — discuss reversals with your CA; this guide does not prepare returns.
Stock statement format for bank CC (Drawing Power basics)
| Stock register | Stock statement | |
|---|---|---|
| Role | Running item-wise movements | As-on / period report for the bank |
| Audience | You, storekeeper, CA | Bank for cash credit / overdraft Drawing Power |
| Frequency | Continuous | As the sanction letter / bank asks (often monthly) |
| Our download | Items + Register | Stock Statement Summary sheet (educational) |
Drawing Power (educational outline only): banks typically start from eligible stock (and often eligible debtors), apply exclusions and margins stated in your sanction letter, and arrive at Drawing Power. A common teaching sketch is: identify paid / eligible stock, subtract creditors against that stock as the letter defines, then apply the letter’s margin. We invent no margin percentage and no universal debtor-ageing days. Leave the margin field blank in the Excel summary and replace it with your letter.
Borrower hygiene (RBI): for commercial-bank advances, RBI’s IRAC Master Circular expects Drawing Power to be based on a current stock statement — generally not older than three months. Older statements can make drawings irregular under that circular. This is operational hygiene for borrowers, not a ScaleSaathi bank annexure format.
Tie-out rule: statement quantities must reconcile to the stock register and the physical count. Our free summary sheet is not labelled as an SBI, PNB, BOB or any other bank’s official annexure.
Job work, samples, damage, and multi-location notes
- Job work: goods sent to a job worker usually leave on a delivery challan — reduce quantity at your location (or track a “with job worker” location). Returns increase your location again.
- Samples / gifts: use the Gift / free sample movement type — do not hide them inside Outward. ITC implications: see s.17(5)(h) with your CA.
- Damage: use Written off or Lost/destroyed with a damage note reference.
- Multi-location: Rule 56 also expects particulars of premises where goods are stored. Keep location on the Items master or as a Register field; do not merge two godowns into one unchecked balance.
How to use the Excel register without breaking it
- Read Start Here before typing numbers.
- Copy a clean master for each period if several people edit.
- Enter opening qty once on the Items sheet.
- Add one Register row per movement — date, item code, movement type, doc no., party/location, qty.
- Leave green formula cells alone (closing qty, value, REORDER, CHECK).
- Blue cells are inputs. If CHECK flags an error, fix the row before trusting closing qty.
- Use the dropdown for movement types — do not invent free-text types that break SUMIFS.
- Review REORDER flags weekly.
- For FIFO layer value of AR-LED9, trust FIFO Worked, not the simple Opening×Rate shortcut on Items.
- After review, keep a read-only copy of the period.
Mistakes that make a tidy register unreliable
- Mixing units (pcs and boxes on the same item code).
- Valuing closing stock at selling price / MRP for books.
- Skipping samples, gifts and damage so Outward looks clean but stock is wrong.
- Week-end batch posting from memory instead of same-day docs.
- Entering opening twice (Items opening and an Opening inward for the same qty).
- Ignoring CHECK / negative flags.
- Silent overwrite instead of a correcting row.
- No document reference — then physical shortages become guesses.
- Treating the bank statement sheet as an official annexure or inventing margin %.
- Assuming the template is a government form or that it replaces returns and CA review.
When a spreadsheet is enough — and when inventory software helps
A single storekeeper with a modest SKU list and clear documents can run these templates as a discipline layer. Move beyond a spreadsheet when:
- several people must post at once;
- you need barcode, batch or expiry control;
- multi-godown transfers are daily;
- negative CHECK flags are ignored because volume is too high;
- you need monthly bank stock statements generated from live bills.
Neutral ScaleSaathi paths (no product landing page on this URL):
- Billing software for retail shop
- Best GST billing software in India
- Accounting software for small business in India
- Free accounting software for small business in India
- Accounting software selector
This remains a format guide — not a Tally/Vyapar setup tutorial and not a retail POS price roundup.
Your closing stock value feeds the balance sheet format at year-end.
Frequently asked questions
What is a stock register format?
It is the layout of an item-wise quantity book: opening, inward, outward, adjustments (loss, write-off, gifts/samples) and closing, with document references. Downloads above give blank and worked INR examples.
Is a stock register the same as a stock book or stock ledger?
In SMB language, yes — people use the names interchangeably for the quantity record. Accountants sometimes reserve “stock ledger” for valued inventory accounts. The one worth keeping in practice is the stock register / stock book format shown on this page.
Is maintaining a stock register mandatory under GST?
GST-registered persons must keep a true and correct account of stock of goods under s.35. Rule 56(2) lists stock-account particulars for registered persons other than composition (s.10) payers. The law does not prescribe one printable government blank. Ask a CA what applies to your registration type.
What columns should a stock register have?
At minimum: opening, receipt, supply, lost/stolen/destroyed, written off, gifts/free samples, and closing — plus date, item, doc no., party/location and unit. Optional: HSN on the item master, rate/value, reorder level.
How do I calculate closing stock quantity?
Closing qty = opening + inward − outward − adjustments (loss, write-off, gifts/samples as recorded). Then apply your valuation method (FIFO or weighted average) for closing value.
Can I maintain a stock register in Excel?
Often yes for small traders as a practical start, if you retain source documents, avoid breaking formulas, use correcting rows instead of erase, and accept Excel’s limits on multi-user audit trail. Electronic records and backups are contemplated under Rule 56(15) and Rule 57 — a shared spreadsheet is not automatically a full GST-compliant electronic system on its own. Ask a CA for your facts.
What is the difference between a stock register and a stock statement?
The register is the running book of movements. A stock statement is an as-on report (often for bank CC Drawing Power). The statement should tie out to the register and physical count. Margins come from your sanction letter only. For DP, RBI IRAC guidance expects stock statements relied on to be current (not older than three months) — see Sources.
Should I use FIFO or weighted average?
AS 2 / Ind AS 2 allow FIFO or weighted average for interchangeable items; LIFO is not permitted. Pick one method with your CA and stay consistent. This page’s worked example uses FIFO.
How do I record damaged goods or free samples?
Use dedicated movement types (Written off / Lost/stolen/destroyed / Gift/Free sample) with a document reference. Do not bury them in Outward. Discuss ITC under s.17(5)(h) with your CA.
Are ScaleSaathi downloads prescribed government or bank forms?
No. They are free educational templates without a sign-up wall. They are not CBIC-prescribed blanks, not any bank’s official annexure, and not a guarantee of statutory compliance.
Sources and further reading
- CGST Act — Section 35 (accounts and other records, including stock of goods). India Code, as on 14 Oct 2026; checked 23 Oct 2026.
- CGST Act — Section 36 (retention: 72 months from due date of annual return; proceedings proviso).
- CGST Act — Section 17 — s.17(5)(h) blocked ITC on goods lost, stolen, destroyed, written off or disposed of by way of gift or free samples.
- CBIC — Accounts and records rules PDF (substance of Rule 56 / 57; cite live rule numbers, never PDF “Rule 1”).
- CBIC — CGST Rule 56 — 56(2) stock-account particulars (composition s.10 carved out); 56(8) no erase/overwrite + electronic edit log; 56(12)/(13)/(14) manufacturer / service / works contract; 56(15) electronic records; preserve per s.36.
- CGST Rule 57 — generation and maintenance of electronic records (backup / restore).
- ICAI — AS 2 Valuation of Inventories (lower of cost and NRV; FIFO or weighted average; LIFO not permitted). Ind AS 2 hub: icai.org/post/8201.
- RBI — IRAC Master Circular (commercial banks) para 4.2.4 — Drawing Power from a current stock statement (generally not older than three months). Margins still = sanction letter only.
- ScaleSaathi — Delivery challan format, Purchase order format, Ledger format, Cash book format, GST invoice format, Credit note format.
- ScaleSaathi original arithmetic — Mehra Traders FIFO example on this page and in
templates/(closing 160 pcs / ₹7,170; qty and cost identity checked). Form 3CD / CARO / ITA stock duties omitted from this guide.
About ScaleSaathi Editorial
ScaleSaathi Editorial publishes practical guides for Indian small businesses under LendLink Tech Private Limited. Format guides like this one prioritise clear downloads, worked ₹ examples, careful legal framing and cross-links to sibling records — without WhatsApp gates, invented legal numbers, or software affiliate fog.