Case Study Series During Govt’s Latest Drive Against GST Frauds to Keep you Compliant and Protected


Case Study Series During Govt’s Latest Drive Against GST Frauds to Keep you Compliant and Protected
May, 2023
By Vikash Dhanania

Namaskar Dost


I hope you find this email in the best of your health.

I write this email after reading about the upcoming drive by the Government of India against fake GST registrations.

All central and state tax administrations will launch a special all-India drive during May 16th to July 15th.

This drive will be aimed at detecting fake GST numbers.

Based on our past experience, we have seen that numerous legitimate businesses are also harmed during drives like these and it is always a good time to ensure your GST practices are all compliant and you are not at risk of receiving issues from the department.

To help you with that, we are starting a small case study series on possible scenarios that you should avoid. These case studies talk about the most common mistakes done by businesses linked to GST that might raise suspicion in the eyes of the department, despite you doing everything the right way.

Let’s start the series with the first case study.

Case Study 1

This case study talks about the issue with HSN numbers.

In a particular scenario, company A had registered for GST for goods having HSN numbers linked to textile products.

However, the owner had a change of plans later down the line and started trading in iron and steel since the textile products’ business was not profitable enough.

The inward and outwards in the eWay bills now show HSN numbers of iron and steel products and raw materials that have no link to textile products.

A situation like this would raise suspicion in the eyes of the department. You as a business should ensure that your GST registration and HSN numbers match the business you have selected during registration. If these do not match, you should opt for amendment in your GST details.

Today’s case study should be a reminder and cue for checking the HSN details of your business.

Thank you for reading the email. Meet you in the next one and I hope this email helped you avoid a problem in your business.

Thanks and Regards


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