Cons of Buying AC on friend’s GST, need sugges

48°
Deal Cadet
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As ac is having 28% gst, i am thinking to get air conditioner on my friend’s gst number(having business of distributors of hindustan uniliver ltd). I want to know if there are any cons for getting the same.

The input credit they got in their account will stand for how much time? At any time he has to pay the gst back to govt? Or in records will the ac unit stand for evee in their records?

Jab kabhi ac khrab ya khatm ho jayega toh kya gst dena padega wapis govt ko jo input credit mein aya ha!

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That 28% gst will get adjusted in gst what he have to pay to govt . Basically he will be able to pay his gst tax using that credit from ur purchase

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He will have to show it as an asset along with depreciation for 5 years I guess..

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If he is such a good friend of yours that he is willing to make a bogus entry in his asset register for the purpose of gst return filing then only do this(make sure your friend knows this because this is what he will have to do).

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guest_999 wrote:

If he is such a good friend of yours that he is willing to make a bogus entry in his asset register for the purpose of gst return filing then only do this(make sure your friend knows this because this is what he will have to do).

Do any authorities check asset register? Can any one buy an item which he doesn’t want to resale, but usable for his business!

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mjuneja13 wrote:

Do any authorities check asset register? Can any one buy an item which he doesn’t want to resale, but usable for his business!

Depends on your friend’s business & the GST tax commissioner of the area, if a physical inspection does take place then it will be caught & your friend will have to pay some “chai paani” making some excuse(1 missing AC does not qualify to be considered GST tax evasion but a “fine” can still be levied).

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It will have to be accounted for in his assets list and will follow suit like all other assets on record. As for the scrutiny aspect, for small players it used to be a fishing game in the past, so purely luck based, but now with AI things are different.

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mjuneja13 wrote:

Do any authorities check asset register? Can any one buy an item which he doesn’t want to resale, but usable for his business!

Your friend has to it in his assets register, claim depreciation and when the value becomes zero, he can show is as disposed off asset….. For 1-2 a/c no one will ask, but if he keeps on doing this then it’s a problem…..

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