How often do mid-size manufacturers actually face ITC denial due to a cancelled supplier GSTIN? (Qui

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I’m wrapping up a research project on GST compliance risks. I’ve spoken to one local CA who told me this problem is rare most buyers check supplier GSTINs regularly, and cancelled suppliers don’t keep operating unnoticed. Before I close my study, I’d appreciate a quick reality check from other practitioners.

One question: In your experience, roughly how often does a typical mid-size manufacturer client (₹5-50 Cr turnover) actually get a DRC-01 notice specifically because a supplier’s GSTIN was cancelled without their knowledge?

· Never seen it
· Once in 5+ years
· Once every 2-3 years
· At least once a year
· Multiple times a year

Replies (1)

The most accurate operational frequency for a typical mid-size manufacturer (₹5–50 Cr turnover) facing an ITC dispute or receiving an inquiry leading to a DRC-01 notice due to an unnoticed supplier GSTIN cancellation is at least once a year to multiple times a year. Regular validation checks cannot fully protect a buyer against retrospective cancellations by the tax department or sudden filing defaults by smaller, lower-tier vendors.


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