Fake transaction or non transfer goods treatment

Depends upon mode of transport and generation of Eway bill.

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This type of same-day purchase and sale, with identical invoice values and no clear movement of goods, can raise red flags under GST, especially if authorities suspect circular trading or tax evasion.

If there is no actual transfer of goods, it might be treated as a non-supply under GST unless documentation clearly proves the physical movement. Imagine issuing two invoices for a Patek watch without the watch ever moving — the tax authorities would definitely take notice.

It’s always safer to maintain proper transport records, e-way bills, and proof of delivery to avoid classification as a fake transaction.