What is the reorder point in inventory management?

Reorder Point (ROP) = (Average Daily Usage × Lead Time) + Safety Stock. When stock falls to or below the ROP, a new purchase order must be placed. Setting the right reorder point prevents stockouts without overstocking. For Indian businesses, seasonal demand fluctuations and supplier lead times from different states (especially for imported goods) affect this calculation.

What inventory method should I use for my Indian business?

Indian businesses typically use FIFO (First In, First Out) — oldest stock is sold first. This is recommended by most CAs and aligns with GST reconciliation. LIFO is not permitted under Indian GAAP (Ind AS). Weighted Average Cost is also widely used, especially for manufacturing. Choose based on your industry and what your CA recommends.

Do I need to file inventory details with GST?

Yes — GSTR-9 (annual return) requires details of opening and closing stock. If you're a manufacturer or trader, proper inventory records are essential. Stock discrepancies between your books and GST returns trigger audit queries. Maintain stock registers with item-wise details including HSN codes for all goods.

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Q: How is inventory valued for GST in India?

For GST purposes, inventory is valued at cost of acquisition or production (as per the standard valuation rules under Section 15 of CGST Act). Closing stock is an important figure for annual GST reconciliation. The value of closing stock affects your GST liability computation, especially when you switch between tax regimes. Always maintain proper stock records with purchase invoices.

📦

Inventory Manager

Free

Product

Type

Quantity

Date

Note (Supplier / Reason)

📦 Stock Movements

🔒 Browser Storage

⚠️ Low-Stock Alerts

📥 CSV Export

1,20,000+

Businesses Served

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Free Tools

4.8★

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Inventory Management Formulas

        Closing Stock = Opening + Stock In − Stock Out

        Inventory Value = Closing Stock × Unit Cost

        Reorder Point = (Daily Usage × Lead Time) + Safety Stock

        Stock Turnover = COGS ÷ Average Inventory Value

Stock Status Legend

Status	Condition	Action
OK	Above reorder level	No action needed
LOW	At or below reorder level	Place purchase order
OUT	Zero stock	Urgent reorder

★★★★★

"As a small pharmacy owner, this tool helps me track medicine stock without expensive software. The low-stock alert helped me avoid stockouts of critical medicines."

Dr. Suresh Pillai — Pharmacy, Trivandrum

★★★★★

"I export the inventory CSV every month and share with my CA for GST annual return. The stock value column helps directly with GSTR-9 reconciliation."

Kavitha Nair — Textile trader, Coimbatore

★★★★☆

"Simple and free. The SKU-based tracking means I can manage 50+ products without confusion. The stock-in and stock-out movement log is excellent."

Amit Gupta — Hardware shop, Chandigarh

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Frequently Asked Questions

How is inventory valued for GST in India?+

For GST, inventory is valued at cost of acquisition or production. Closing stock figures are required for GSTR-9 (annual return). Stock value discrepancies between books and GST returns trigger audit queries. Maintain proper stock registers with item-wise details and HSN codes.

What is the reorder point?+

Reorder Point = (Average Daily Usage × Lead Time) + Safety Stock. When stock hits this level, place a new purchase order. For Indian businesses, factor in seasonal demand and supplier lead times. This tool shows a LOW alert when closing stock reaches or falls below the reorder level.

Which inventory method is accepted in India?+

FIFO (First In, First Out) and Weighted Average Cost are the two methods accepted under Indian GAAP (Ind AS). LIFO is not permitted. Most CAs recommend FIFO for retail and trading businesses. This tool uses the simple closing-stock formula without a specific valuation method.

Is my inventory data saved?+

Yes — data is saved in your browser's localStorage. It stays on your device and is never sent to any server. Export to CSV regularly as a backup. If you clear your browser data, all records will be lost.

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