6 GST Hacks Businessmen Use to Avoid Taxes




  • Date Frauds: as GST implementation date has just passed on July 1st, some companies are trying to take this to their advantage by recording their transactions at a back date.
  • Cash transactions: Cash has been the safest in transactions since ages. Now businesses are encouraging more of cash transactions.
  • Altering the product definition:  GST rates have been revised and reduced for a lot of products depending on the type of product. There was this popular debate on whether KitKat was a chocolate or a wafer biscuit since GST rates vary between the two. Similar to that, companies are actively altering their product category to gravitate towards the category that has less or no GST tax rate.


  • Moving goods between States: some businesses transport their goods between different states to misuse the input credit feature of GST. They do an inter-state transfer within the same company while quoting it as a different company.
  • Artificially Made Smaller Turnover: Since companies with a turnover of 20 Lakhs or less are exempt from GST, many are trying to break-down their company structure into manageable mini units to escape from paying tax.
  • Rise in the business of Exempted Goods: GST has a relatively good number of products that are exempted from GST. Since this is a fully profitable area, companies are using this reason to move into a new product category altogether. E.g. puja items, Khadi, etc.

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