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All-India Drive to Detect Fake GSTINs: Ensuring Compliance to Safeguard Government Revenue

Rashmi , Last updated: 12 May 2023  

To combat the presence of suspicious and fake GSTINs (Goods and Services Tax Identification Numbers) in the GST eco-system, a Special All-India Drive has been launched by both Central and State Tax administrations. This drive, taking place from 16th May 2023 to 15th July 2023, aims to conduct verification and necessary actions to weed out fraudulent billers. It is essential for businesses to take proactive measures to avoid fines and penalties during this drive.

Key Steps for Compliance

To ensure a smooth process and avoid penalties, businesses need to adhere to the following crucial steps:

1. Display GST Number on Sign Board

Every registered person under GST must prominently display their GST number on the name board or business sign board. Failing to comply with this legal requirement can result in a general penalty of Rs. 50,000.

All-India Drive to Detect Fake GSTINs: Ensuring Compliance to Safeguard Government Revenue

2. Display GST Registration Certificate

Traders and businesses are obligated to display their GST registration certificate at their business premises. Neglecting this requirement can lead to penalties as well.

3. Mention Composition Scheme Status

If you are a taxpayer availing the composition scheme and not entitled to collect GST from customers, it is important to clearly mention this on invoices and documents related to your business transactions.

4. Timely Filing of GST Returns

Ensure that all GST returns have been filed within the prescribed timelines and that the applicable taxes have been paid accordingly. Timely compliance with GST return filing is vital to avoid penalties and stay on the right side of the law.

5. Maintain Complete Sales and Purchase Registers

It is essential to maintain accurate and up-to-date sales and purchase registers as per GST laws. These registers should reflect all relevant details of transactions conducted, including GSTINs of suppliers and customers, invoice numbers, and amounts.

6. Register Additional Places of Business

If your business maintains stock or operates from a location separate from your primary shop or establishment, remember to register each additional place of business separately under GST.

Apart from the measures mentioned above, business owners and shopkeepers should also take care of the following aspects when a GST officer visits their premises:

1. Organized Documentation

Ensure that all relevant documents related to GST compliance, such as invoices, purchase orders, sales records, payment receipts, and input tax credit documents, are properly organized and readily accessible for inspection.

2. Record Maintenance

Maintain accurate and up-to-date records of all transactions, including sales, purchases, expenses, and input tax credit. These records should align with the GST provisions and should be available for scrutiny during the officer's visit.


3. GSTIN Verification

Verify the GSTIN of your suppliers and customers to ensure that they are valid and genuine. Cross-checking the GSTINs will help prevent any potential issues related to input tax credit claims and ensure that you are dealing with registered taxpayers.

4. Compliance with Input Tax Credit (ITC) Rules

Review and reconcile your input tax credit claims to ensure compliance with the relevant GST laws and rules. Ensure that the conditions for claiming ITC are met, such as possession of valid tax invoices, matching of invoice details, and timely filing of GST returns.

5. Proper Stock Management

Maintain proper stock records and ensure that the stock matches the information provided in your GST returns. Any discrepancies in stock quantities or inconsistencies between stock records and GST returns may raise concerns during the officer's visit.

6. Cooperation and Communication

During the officer's visit, cooperate fully, answer their queries truthfully, and provide any additional information or documents they may require for verification. It is essential to maintain open communication and assist the officer in carrying out their duties smoothly.


7. Knowledge of GST Laws and Regulations

Stay updated with the latest amendments and changes in GST laws and regulations. Being aware of your responsibilities as a taxpayer will help you comply with the requirements and address any queries or concerns raised by the GST officer effectively.

By taking care of these additional aspects, business owners and shopkeepers can enhance their compliance with GST regulations, ensure smooth visits by GST officers, and minimize the risk of penalties or fines.


The ongoing All-India Drive to detect fake GSTINs emphasizes the importance of compliance and maintaining transparency in the GST system. By following the prescribed steps and fulfilling the necessary requirements such as displaying GST numbers, registration certificates, and maintaining accurate records, businesses can safeguard themselves against penalties and contribute to protecting government revenue. It is essential for all taxpayers to actively participate and cooperate with the GST officers during this drive to ensure a clean and credible GST eco-system for the benefit of all stakeholders involved.

The author is a Chartered Accountant with 2 decades of experience into Accounting, Taxation, Auditing, Risk & Compliance, Credit Controls, Due diligence. Currently, the author is the founder and managing partner at RRL Global services.

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