GST Survey – Mock Drill Script

Surveys are normal in GST these days and provision has been made for this in the GST law Like other Taxation Laws. These days GST surveys are being conducted everywhere. Here I have vividly imagined a GST survey. With the help of your association’s and its members, you can present it on the stage and explain to the professionals and taxpayers the situations arising under the GST survey so that they can face the survey, which is a normal departmental process, without any fear and stress.

This mock drill was demonstrated by in front of 600 professionals and taxpayers in Jaipur on March 2, 2024 and was probably the first program of its kind. This was a successful programme.

Today, I am sharing the original script of this mock drill written by me with all of you so that you too can make meaningful efforts in this regard and support professionals and taxpayers .

You can change the script as per your own preferences… Since this is first of its Kind, please rectify the Mistakes You find while reading the script. Sudhirhalakhandi@gmail.com 

Also Read: GST सर्वे मॉक ड्रिल- The Original Script

PART-1

It is morning time…………65-year-old Bhagirath ji was drinking tea in the drawing room with his wife and had today’s newspaper in front of him. His 61-year-old wife was also sitting with him and sipping Tea . Just then the call bell rings.

Shanti Devi – Ramu, look who is there in the morning? It is only 9 o’clock now.  please tell him that  Vipul Bahiya is out of town.

Ramu- Yes! Malkin.

Ramu crosses the Drawings Room and moves towards the door of the house… opens the door… there are 8-10 people outside. One of them says –

 I am Deputy Commissioner, State GST… Tell your boss that there is a GST survey of your business.

Ramu- Vipul  Bhaiyaji is out of the Town…. Please be seated Sir (he points towards the space outside the door where some chairs were kept) I am talking to the Bade Malik , Vipul Bhaiya’s Father.

Ramu (entering the drawing room and to Bhagirath ji) – GST officers are here at our house Bade Malik … they are saying that there is a GST  survey on our Business.

Bhagirath ji – Okay Ramu !!!!! How many people are there?

Ramu- Malik  they are 8-10 people.

Bhagirath ji – Okay… you arrange tea  for all of  them … I am talking to them.

Shanti Devi – Oh God!!!!! What will happen now ? Vipul bhaiya is also not here. How we will deal with this problem.

Bhagirath ji – Oh shanti ji !!! Take it easy !!!! Why are you so worried ? I have given up business 5 years back and have handed over everything to  son Vipul… but don’t be afraid to all these situations. I am here to take care of everything . I have also done business for years and years. All this is normal. It is part of the Life. Take it easy.

(Bhagiratha ji crosses the door and goes outside and reaches the officers waiting there.)

Bhagirath ji – Hello sir! I am Bhagirath …. Father of Vipul who is the owner of firm. We have one more firm which is owned by his wife.

Officer – I, Akshay Kumar Singh!!!!! Deputy Commissioner State GST. The firm name  is M/s Jai Lakshmi Trading Company for which we have survey orders.

Bhagirath ji – Yes Sir, my son Vipul is the proprietor of this  firm… The firm is being run at the ground floor of the house. My son is out of town today. There is some court case today. How can I help you sir ?

Akshay Kumar Singh- This is a survey of this firm. We will have to search your house. Please show me the entire house so that my men can start the work. This is the address given in the registration certificate of M/s Jai Lakshmi Trading Company. It is our official duty.

Bhagirath ji – Okay sir… but the business is run in the Ground floor of the House and the office and warehouse are also there. Why do you want to search our house? Let us talk further in this regard because My house has nothing to do with business of My House. Let us be sure about it and till then you can drink tea. Ramu…. Ramu…. beta bring 8-10 cups of tea.

Akshay Kumar Singh- Listen sir! Let the survey process begin. We do not take anything at the business place. Just let us start the survey process. Why you are creating hurdles  in our official duty.

Bhagirath ji- Look sir! Neither am I the owner of this firm nor is it a business place…this is my house.  My son is also living here…. Please Give me some time. Though I am a retired person now but  I have also done business honestly for 35 years…. Let me talk to my son.

Akshay Kumar Singh- Look Sir, you Must  cooperate. Don’t force me to be strict. Please give us your mobile also…you cannot talk anywhere.

(By then Ramu brings tea and biscuits in a tray and places them on a table kept there.)

Bhagirath ji – Sir! You are doing your work and you will be given full support as required by law. As your  survey is concerned , it is of my son’s business place. If you want, please check the registration certificate. It contains information about the business place. The address is on the ground floor and I have given my consent letter for the same. This house is not a place of business. It has nothing to do with the Business of my son.

Akshay Kumar Singh- What do you want to say?

Bhagirath ji – Let us have the tea first… and let me talk to my son on the phone.

(Akshay Kumar Singh talks to his staff…. then he uses his phone and talk somewhere…   whose voice does not come out but it seems that he is a little tense, then looks at some papers in the file with him and then he picks up a cup of tea from the tray. Ramu gives tea to everyone else too.)

Akshay Kumar Singh (making his voice soft) – Look Mr. Bhagirath ji! You talk to your son and then start the survey process. If you can put the phone on speaker, it would be a little better, it is your choice… for now the survey will be conducted only at the firm’s business place. You stay comfortably at home.  No survey or search will be done at your house unless we get any information in our survey at Business Place.

Bhagirath ji –….Hello! Yes Beta… there is a survey of GST… Yes

Vipul (Voice on Phone ) – Okay! I am struck in this court case… but Papa… don’t panic… I am sending my manager Ashok… you give him all the keys. If the officer can talk to me, please let him talk to me.

Bhagirath ji – Sir! My Son wants to talk to You Sir.

Akshay Kumar Singh- Yes, Give me the phone!

(Bhagirath ji passes the phone towards Akshay Kumar Singh)

Akshay Kumar Singh- Hello! Yes, Deputy Commissioner of State GST Akshay Kumar Singh  speaking.

Vipul – Yes, Hello Sir! Namaste !! How are you sir.

Akshay Kumar Singh- Hello, there is a survey of your firm and you are not here… Very Strange !!!!!

Vipul – Yes sir! (with Little Laughter) Had I had such information; I would have stayed their sir! I will come by evening. I am sending it to my manager. You will get full support and information and documents.

Akshay Kumar Singh (in a slightly heated voice) – If you were there….

Vipul – Yes sir! You rest assured sir! You do your official work and my staff will give you full support. My manager stays nearby. He will reach there shortly …. I am just taking to him … sir! I have a request… My father is elderly person and has nothing to do with my business… So please keep him away from all this process.  My staff will give you all the rest of the answers… I also try to come to  as soon as possible.

Akshay Kumar Singh- Okay… you send the staff as early as possible… I have to  start the work…. Already lot of time is wasted.

Akshay Kumar Singh (to the accompanying officers) – Come on! officers …Let us go to the ground floor.

Bhagirath ji – Yes sir! Manager Ashok is coming just now…he knows everything…till then you wait here…I will take out the keys of the office.

(Everyone drinks tea… they are looking at their papers, then the doorbell rings, Ramu opens the door – Manager Ashok enters and as soon as he comes, he greets Bhagirath ji by touching his feet and shakes hands with Akshay Kumar Singh).

Ashok – Good morning, sir! Let’s go to the office…come. I have also called our accountant Mr. Jaykishan and assistant Atul . If you permit, I will get you to talk to CA sir. Or if you ask, I will call him… Let’s start… Vipul  Sir will also come by evening.

Turning towards Bhagirath ji, Ashok says – Bauji! You take rest…if you have any work, call me ……… Vipul Bhaiya  has specifically told me to keep you away from all these proceedings.  Leave it on me …. I will handle everything.

(Everyone moves downstairs)

The curtain falls on the stage and preparations are made for the second scene.

PART 2

There is an office in which there is a big table. There is an executive chair and 4 chairs in front of the table and a sofa and centre table on the side. There are 15-20 box files in one shelf. There is a desktop computer on the table and a phone is kept next to it. There is a side table on which a desktop computer and printer are placed and two chairs are placed. The office hall is divided into two parts and there are two rooms on which warehouse Numbers 1 and 2 is written. The name of firms and GSTN are written separately on both the Godown. At one side of the hall name of one firm with Registration Number is written and same thing for the second firm is also done on the other side of the hall. On both the sides registration certificates are fixed on the respective walls .

The officers and employees who came for the survey are sitting on the chairs adjacent to the big table in the office. Manager Ashok is also standing nearby.

Akshay Kumar Singh – (to his colleagues) – All of you, except one or two, start the search. Look at all the shelves… don’t miss any space.

Ashok Manager – Sir! One minute please… first show the authorization Letter of the survey. Please sir.

Akshay Kumar Singh – Yes! Yes ! Why not… (gives a paper to Ashok)

Ashok Manager – Sir! Should I talk to my CA sir?

Akshay Kumar Singh – Yes! Whatever has to be done, do it quickly ……. a lot of time has already been wasted.

Ashok Manager – ( dials the Mobile…) Hello CA Sir !!!!  Yes Sir! Good morning ! Yes sir, GST survey is there… Oh! Vipul Bahiya has already talked to you… Ok Sir…  yes, Sir authorization is there…. place is there yes sir! The authorisation is only for the office… Yes sir! Name of the firm is same – Jai Trading Company… Yes Sir! Vipul sir is the proprietor is in the firm………… No sir! There is no other firm is mentioned in the  letter………… Yes, I see sir! No, Vipul Sir’s wife  firm is not in this Letter… Yes sir! The authorization is proper… Yes, I will take care of the other firm… Yes, if necessary, you will have to come… Vipul sir is also not there. Ok Sir.

Akshay Kumar Singh – Mr. Manager… a lot of talk has been done… now let me start the work.

Ashok Manager – Sir! See, two firms run in this office, the part on the left side and these two Almiras belong to this firm Jay Trading Company whose survey you have to do. This warehouse in front also belongs to this firm. The Almiras and warehouse on the right belong to another Vijay Trading Company. The owners of both the firms are different. The registration certificates of both the firms are posted separately on both sides and outside the office and GST numbers are also written on the walls on different sides of both the  offices and apart from this, the same has been written separately on the warehouses of both the firms. Be sure we have followed all the provisions of Law. We are the Law-abiding dealers.

Akshay Kumar Singh – Mr. Manager ! You are very smart. your CA gave a lot of knowledge in a very short time.

Ashok Manager- Sir! Don’t be angry. If it is a legal survey then I will also have to take some care and since Vipul sir is not here so you know my responsibility are more … I am a servant here and doing my duties.  Anyway, CA sir always keeps sending messages in this regard… That’s why. We know a little bit at least.

Akshay Kumar Singh – Okay! Why have you people taken two registrations at the same address?

Ashok Manager- Sir! We have covered the entire ground floor of the house for our business purpose and have marked the locations of both the firms separately and have put up registration certificates where ever necessary… There is a separate number mark on the warehouse and also in the registration certificate. The warehouses are also separate.  The stock of both is also kept at different places in difference godown. So there is no mixing on our part. Is it not Legal Sir ?

Akshay Kumar Singh- Okay …… Leave it, we have heard you… We will see the papers of only that firm whose survey we have to do. Just happy now!!!! But you also get it confirmed that there is no document of this firm on the other side of the hall.

Ashok Manager – Yes! Sir… thank you Sir.

(All officers and employees start searching the shelves etc. on the left – some move towards warehouse number-1)

Akshay Kumar Singh – Mr. Manager sir! Show your accounts.

Ashok (Manager) – Sir, just ten minutes… I have called accountant Mr. Jaikishan and our assistant Atul; they will be arriving soon.

Akshay Kumar Singh (getting heated) – Look Mister! I have been in this department for years… these excuses of yours will not work with me… we don’t have that much time. All these are old techniques of delaying surveys. Are you showing the accounts or not? Should I seize all the computers and records? You would like to keep coming to the department again and again…

Ashok – Sir! Please give some time and be patient.

(After that he takes out a file from the cupboard and places it in front of Akshay Kumar Singh.)

Akshay Kumar Singh (looking at the file) – Okay!!!! These are the accounts… oh ! My God… you are a very clever man.

Ashok – Sir! This is the details of sales and purchases of the last month till 31^st.  December and along with it is the balance sheet and profit and loss account of the first three quarters… along with this there is the list of Debtors and Creditors and the list of Stock in Trade.

Akshay Kumar Singh (looking at the paper) – And what happened in the  after December 31^st. ? You won’t show that… You are a very clever and strange man… Call your boss otherwise I will seize everything and take you away… Are you making fun of us and not taking the survey seriously ?

Ashok – Sir. Sir …… All the accounts till tomorrow evening are ready with us. Vipul Sir does not let the accountant go home until the accounts are complete. He lives a little away from here.  He must be coming soon.

Akshay Kumar Singh – Leave all this! You call your boss, Mr. It won’t work like this. You are taking us too lightly.

Ashok –  Sir! Bade Malik had told you above that Vipul sir has gone out because of a court case and even if he tries, he will not come before evening. Please give me some time.

Akshay Kumar Singh – calls his two officers…

Two of his officers come and stand near him.

Akshay Kumar Singh – Come on. you guys make a report. The party is not cooperating so seize the computers and  whatever documents you see. Collect everything.  They are not in the mood to cooperate . They will tell everything only after coming to our office. They are fond of making rounds to the GST office. First, they say they cannot search the house. Now they say they will not show the accounts. The owner is in another city… Their thinking is that it is not a survey; it is a joke. Pick up all the record and . Officers You all make sure nothing is left behind.

(Ashok is talking on the phone somewhere)

Ashok – Hey! Jaikishan !!!!!!!where are you Brother ? Okay… come quickly otherwise there will be a storm here. Vipul sir is also not there. What are you doing….

After talking on Phone …

Ashok – Sir! You are getting worried unnecessarily… I have spoken to the accountant and he is coming in 5 Minutes.

Akshay Kumar Singh – Hey! Keep your phone also on the table. You will not talk on the phone without my permission. Got it…

Ashok – Yes sir! Yes Sir !!

Akshay Kumar Singh – (to one of his officers) – Yes Anirudh, turn on his computer… see what is there in Accounts ?

(Ashok sits worried)

Akshay Kumar Singh – Mr. Manager ! Whatever your accounts are in the computers ……. Give them to my officers .

(Ashok and Anirudh sit on the side table with a computer. Anirudh turns on the computer… tries for some time…)

Anirudh – Sir! The computer is password  protected…Ashok ji, give the password.

Ashok – Sir. I don’t have it, only the accountant can talk about it. He is coming sir!

Akshay Kumar Singh (almost shouting) – Well, this is your trick! It’s your choice… let’s open their hard disk and take it away… they don’t even understand the meaning of survey. I think no accountant will come or does not exist…they are just pretending. I think their owner is in the House above.  They are lying everything to avoid the survey.

Anirudh- It is general phenomena these days…. But they should know you are a very tough officer. Mr. Manager … do the needful otherwise…….

(Just then accountant Jaikishan and an assistant Atul enter……….

Accountant – Sir! I have come, tell me what to show now. By yesterday evening I had finished all the work and then left for Home. Manager sir! You are very tense. Oh! Vipul Sir is also not there.

Ashok Manager – Hey Jaykishan ! How did it take you so much time. There is a hurricane here.  My life is stuck here… Vipul Sir has a court case at capital … Please open your drawer and take  out my medicine first .

Accountant- Oh! Manager Sir,  Atul and I had stopped on the way to Drink Some tea and have breakfast.

Ashok – Wah ! Jaikishan Wah !! Here I am dying facing all this tough situation.  and you have to stop for tea and breakfast… Strange !!! was this very important? Can’t you do without tea and breakfast? There is trouble here. (Ashok looks at the officers in between while speaking in anger.).

Accountant- Sir! Don’t take tension… Now I have come. Your BP remains high every time so You take the medicine. I will take charge of everything here.  And sir! Where I used to work before joining this company , a survey was also conducted and it started in the morning and it was 11 o’clock in the night, so I told Atul that after so long we would die of hunger, so we stopped to have some breakfast first. Now get the survey done comfortably.  Don’t worry Sir. I am here … Now.

(Akshay Kumar Singh also starts smiling at his words. and a little tension is seen reducing from the manager’s face)

Akshay Kumar Singh- Hey! Now that the chit-chat  between you guys has ended then you should do some work… or are you just preparing to avoid us through talking and talking…….

Ashok – Come on Jaykishan ……  Now give them all the documents and accounts… You keep in mind that the survey is only of Vipul sir’s firm. I will also come back after having some tea and breakfast. It was so tough for me.

Akshay Kumar Singh – No one will go anywhere…. you too sit here… Mr. manager.

The accountant sits at the computer… and after some time opens the accounts… takes out some files from the cupboard.

Accountant- Sir! I have opened the account Books …this is the file of purchases…this is of sales…the stock register is in the computer itself…this is the bank file. Anything else sir….

Akshay Kumar Singh calls his two officers.

Akshay Kumar Singh – Check the accounts and documents thoroughly…. Reconcile the sales with the e-way bill portal. Take the list of stocks and assign two people to check the stocks. And see what has been found during the search, collect whatever papers and diaries you find here. Nothing should be left .

(Just then Akshay Kumar Singh’s phone rings…he picks up the phone)

Akshay Kumar Singh – Look, the work hasn’t even started yet and Bade sab  call came… there is pressure from all sides, what type the service we are doing … pressure … pressure and pressure .  How to work in this atmosphere.

Akshay Kumar Singh (on phone) – Yes sir………… No No No , everything has started here sir! Yes, this is a product wise survey, yes  two places in the city are authorised for survey , I have sent a team to the second place… Yes sir, I will also go there after some time… No sir! Now they are cooperating . Now sir! In the beginning we have to think about everything but the work has started Now. Let’s see what the result is… Yes Sir! I am leaving sir! I report from there also to You sir.

Akshay Kumar Singh calls an officer….

Akshay Kumar Singh – Look Narendra ji! Now you see the work here. I had received a call from Big Boss … I am going to another survey site. If you have any problem then call me. And yes, nothing should be left out here. No tax evasion should be left out. I also have to answer further to Big Boss . Be careful.

Narendra Kumar – Yes sir! I will take care of everything. You take your own time at second survey site and come at your time. Leave the rest on me.

Akshay Kumar Singh- Yes Narendra Ji ! In the survey, everyone considers you the most capable officer of the department. Let me go to another site… Take care of everything.

Akshay Kumar Singh leaves… Now Narendra Kumar and another officer sit on the computer with accountant Jaikishan . Accountant Jaikishan shows them the accounts and both the officers look at the accounts with careful eyes.

Narendra Kumar- First get  the list of stocks…

The accountant prints the list of stock…

Accountant Jaikishan – Take it sir! There are two types of goods. The stock list till yesterday is complete and ready. One type has 72 cartoons and the other has 101 cartoons, some of these are jumbo size cartoons,  whose number is also written in it. Atul, go get it checked sir… get it checked in a very carefully . there is no question of  any difference in stock. Just last week I and the Vipul Sir got it checked.

(Atul and two officers go towards the warehouse. Manager Ashok is reading the newspaper sitting on the executive chair. He takes a tablet with water and now there is a little less tension on his face.)

Ashok (to Narendra Kumar) – Sir! I am here … If you have any work, please let me know. If you allow me, I can order tea etc. from House of owner.

Narendra Kumar- Okay, see… but don’t go anywhere. Ashok calls upstairs for Tea and Breakfast.)

Narendra Kumar- Come on Mr. Accountant ! First, get the sale bills of the  checked and the purchase bills… get the sale bills matched with the e-way bill and similarly get the purchase bills also checked in the same manner. Then get both matched with the stock register…

(Both viewing the bills etc. Narendra Kumar makes some notes in between while carefully viewing the Bills)

Narendra Kumar – Now get the aging of your creditors checked… How much is the payment after 180 days of date of invoice.

Accountant Jaikishan – Sir! Although we get credit only for three months but due to some problem in the bank, twice we made the payment after 180 days but its input credit was reversed and it was taken back only after the payment was made. I am giving you a copy of 3B in which it has been reversed and a copy of it in which it has been taken back, both of which have a statement on the back. Yes sir, should I give you anything else in this respect ?

Narendra Kumar – Yes and a copy of the seller’s ledger. Yes, what happened to the interest on the credit you reversed… You know section 50 regarding payment of Interest.

Accountant Jaikishan – Sir! It was calculated by our CA sir and we have deposited the same.  I am also giving its details about this.

Narendra Kumar – Okay… now take out the transport account… and take out the details of RCM… are you paying RCM or not ?

Accountant Jaikishan – Sir! I am giving… whenever  RCM is paid full and we have nothing to do with it, sir. Here we get paid and take the ITC of the same. So there is no problem, Sir.  Take these details sir… (takes out some printouts)

Narendra Kumar – And yes what about Monthly … …Are you  depositing  it within time ?

Accountant Jaikishan – Yes Sir! Vipul Sir is always saying … 20th is the last date but we must deposit the tax on 18th and send the return to CA sir for filing of the same.

Narendra Kumar :- Hun…….

Accountant Jaikishan – Sir, you can check that tax is always deposited on 18th. Tax is deposited online, so it does not matter even if 18th is SUNDAY. Our office also opens for two hours on SUNDAY… This is a file in which copies of all the challans are kept. Our Assistant Atul will arrange the photo copies of all the challans.

Narendra Kumar – Now Mr. Accountant !!! What about  Credit Notes and Debit Notes…

Accountant Jaikishan – (Giving another file) It has both credit notes and debit notes… I am giving the details of all in this file. This one more file has a copy of all our filed 3B and GSTR-1, please check sir.

Narendra Kumar – OK

Accountant Jaikishan – Apart from this, we have downloaded GSTR-2B in another file and you can match the credit taken in our GSTR-3B. All the forms of previous years are included in it, sir.

(All other officers are also looking at the files and documents)

Manager Ashok gets up from his chair and comes to them.

Manager Ashok – Sir! If you want, I will call CA sir. I have already talked to him.

Narendra Kumar – Come on, call me otherwise you both together will ruin our night.

(Narendra Kumar starts looking at the documents again)

Narendra Kumar – Look! what is this ? This seller of yours has filed his return of March 2023 in December 2023 and your credit in this is also Rs 1.25 lakh. ,

Accountant Jaikishan- Sir! We have given and paid the tax to him… after all the seller has also paid the tax along with interest. The government has already received the tax.

Narendra Kumar – Brother, law is law and GST Law is very strict Law…you will not get credit for it. This will have to be reversed.

Accountant Jaikishan- Sir! According to me, nothing like this should happen.

Narendra Kumar – Look Mr. Accountant ! The law is not working according to your wishes. You must have heard about Rule 36 (4) of GST. Also see the new sub clause of Section 16 (2).You will not get this credit or else read all the rules of input credit. Ask Your CA. Mr. Manager Please see it …

Accountant Jaikishan- Yes Sir! Now I don’t understand that much. These all seem like confusing laws…

Narendra Kumar – And look at this input  credit that you have taken in the return of December 2023… this is for the bill of February 2023.  The time for ITC is already over. You yourself have marked with a pencil that the credit of Rs 25000.00 is for the bill of February 2023.

Accountant Jaikishan- Yes Sir! I was looking at the audit notes that day… the credit of this bill was missed… I was late in looking at the notes, then when I looked, it was taken in December 2023 by me. After all we have purchased the goods and the tax. It has been given and payment has also been made… after all we must take input credit  sir otherwise who will bear this loss.

Narendra Kumar – Mr. Accountant ! Well, you were saying that you have a lot of knowledge about the law. In this case, if you are late in taking ITC as per section 16(4), you will not get this credit and to reverse it.

Accountant Jaikishan – Hey Bhagwan !!!  What kind of law is this…. Did GST come to help us or to confuse us…. I heard that GST was brought to simplify indirect taxes. CA sir is coming… same. He Will talk to about this. I am totally lost Sir.

  (Just then CA Rahul Sharma enters)

Accountant Jaikishan- Hello Sir! Come, now you take care… I have no skill and knowledge to face all these questions. Please help sir.

CA Rahul Sharma- Hello Kumar Sab!  Tell me how is the survey going… did you find anything?

Narendra Kumar – Come! Sharma sir! You too in this survey!!!!! You were also in the survey just two days ago. Great !!!! You have a very wide client base.

CA Rahul Sharma- What to do sir!!!! You have a lot of attention on our clients only and then the owner of this firm is my morning walk partner and also a good friend.

Narendra Kumar – (laughing…) What are you saying Mr. Sharma !!!!! our eyes are only on your clients… There is nothing like that Sharma sir !!! we ourselves follow the orders of the superior…Big Bosses are there.

CA Rahul Sharma- Come on… how far you have reached. Any Problem … Vipul has also called me .

Narendra Kumar – Yes… see this, input credit of Rs 1.25 lakh will have to be reversed. See when the seller of these has filed the return of Feb 2023. In December 2023…. and again see he has taken this one more ITC Rs. 25000.00  after the Lapse of the time …. Jaikishan ji, show these two details to CA sir…

CA Rahul Sharma- Come on Kumar Sab !!! These are matters of Rule 36(4) and Section  16(4) … you note it down Sir … both are disputed provisions… you should give notice for this to the dealer  , I will give the reply. These issues are going on in many places… The government has already got tax from this and if once more tax is imposed then it is double taxation. It is possible that by the time we respond to your notice, a decision may be taken in our favour at any of the High court  or the government may provide some relief.

Narendra Kumar – Okay Sharma ji! If you want notice then we will give you notice. Mr. Accountant , Give me relevant documents of both these cases.

(make some notes)

Narendra Kumar – Okay!!!! What is your Turnover ?

Accountant Jaikishan – Till yesterday evening we have achieved  Rs 6 crore 53 lakhs turnover Sir.

Narendra kumar – Ok ! Then you are following the E-invoicing ?

Accountant Jaikishan – No sir!

Narendra Kumar – Hey! You will have to pay a penalty of Rs 10,000 on every bill and your buyer’s credit will also be stopped. Why don’t you do e-invoicing… above 5 crores it is necessary… why CA sir? What is this !!!!!!!

Accountant Jaikishan looks at the manager nervously… Ashok gets up and comes… looking a bit worried….

Ashok – CA sir! What is this problem of E-invoicing  !!!!!!! Sab is telling the penalties are also very huge. Now what to do… you talk something with him sir… we have not done e-invoicing… you yourself talk to sir…Please !!!!

CA Rahul Sharma – Hey! Ashok ji !!!! Please keep calm. I had sent you a message before August that if your turnover in any previous year after 2017 is more than Rs 5 crore then you must do e-invoicing. You look at the turnover of the past years.

After scrolling Mobile CA show the message to the Manager-

CA Rahul Sharma – See it is here… I sent it all the clients… Both you and Vipul are on my News Feed. See both of you read it…. Let me see

Ashok Manager – Sir! How did this mistake happen…  Look Jaikishan ! Take out the previous audit report… Yes…. Yes this…. See this sir, our last sale was only Rs 4 crore 52 lakhs, even before this it never crossed 5 crores. This has happened this year only. Only in current year we have crossed 5 Crores.

CA Rahul Sharma – So e-INVOICNG is not applicable on you yet….it will be applicable on you from 1st April 2024. Come on Kumar Saab! This issue is also over.

Narendra Kumar – Okay, okay Mr.  Manager ! Your CA sir is also very smart…

Narendra Kumar – See this… this is your Exempt sale… and in this account you have also made taxable purchases… what is this?

Accountant Jaikishan – Sir! It is made by mixing two materials… one raw material  is taxable and the final product is Exempt from Tax…. This is the new project of Vipul Sir. Mixing takes place in the warehouse itself. It is very simple process.

Narendra Kumar – From this entry it seems that you have also taken credit for taxable goods used for making  Exempted goods…

Accountant Jaikishan – Yes Sir we have taken the ITC….we have also paid tax on it, sir.

Narendra Kumar – Now get it reversed CA sir! Input credit is also taken for taxable goods used to make Exempted goods.

CA Rahul Sharma – Hey Jaikishan ji, show me!!! Yes… show me this sale Account… well, you have exported it.

Accountant Jaikishan – Yes sir! This is Vipul sir’s new export project… but this product is tax free. What to do sir !!!!!

CA Rahul Sharma – Yes brother, the goods are tax free but they have been exported, hence you will get credit for the taxable goods used in it.

Narendra Kumar – Hey! Friend, at least agree to something… or our entire survey will go like this. Well your preparation is very good. This happens rarely.

CA Rahul Sharma – Come on sir! Now whatever it is …. It is in front of you.

Narendra Kumar – Let’s see the stock now.

Ashok – (In Loud Voice) – Atul, see what happened to the stock.

Atul (coming inside) – Sir! That’s it… I’m checking. Don’t know why there is a difference of 6 cartoons. Both types of stocks were checked just last week and there was no difference .

Narendra Kumar – (looking towards the warehouse) – Hey! Call those two officers…

Coming out of the warehouse, two officers come and stand…

Narendra Kumar – Officers … what is the difference. Is it big or negligible ?

An officer – Sir! There are 6 cartoons less from  their list and the price of these six is around Rs 10 lakh. There are 10 jumbo size cartoons in their list but there are only 4 inside. It is a big difference in terms of Money.

Narendra Kumar – Come on… Confirm it … see what their accountant and manager say. CA sir, you look it. Rs. 10 Lakhs is a very big amount.

CA Rahul Sharma (worried) – Yes Sir! Ashok ji…what is the position…

Manager Ashok goes towards the warehouse… There is a sound of talking inside and talking on the phone… but the voice cannot be understood outside.

Manager Ashok comes out.

Manager Ashok – Sir! The stock is less… Urgent goods were required last night at Vipul Sir’s friend’s factory.… Vipul Sir was supposed to make the bill in the morning but he left early in the morning… His friend  took the goods at night itself… and then the survey also started in the morning. …we had no intention of tax evasion.

Narendra Kumar – Brother! Everything is fine… but the goods were sent without bill and without e-way bill. Okay brother, everything must be done in friendship. So CA sir, calculate and deposit the tax with penalty.

To his officers – Brother, what is the tax rate on this?

Officer – It is 18% sir….

CA Rahul Sharma- Okay sir! Take a look… I am talking to Vipul… I make a call and go out.

(CA Rahul Sharma comes back….)

CA Rahul Sharma- Sir! See…. It is an innocent mistake.  You see… Vipul  is also just arriving. He has reached the city.

Narendra Kumar – CA sir… the goods went without e-way bill and without invoice and you are calling it an innocent mistake… Not Please suggest them  pay tax and penalty on it… everything else is fine. Yes…after this will close the survey. After that we will also give you input credit notice for section 16(4) etc… as you have said. You come to the office and reply that matter…ok.

(Just then a smart young man enters… in blue jeans and white shirt…. )

Vipul – Sir! I am Vipul the owner of this firm. Hello Sir. Hello CA sir! How are you? How it is going… We are law abiding people .

Narendra Kumar – Hello brother… I took a lot of time in coming… but your staff is fine and then CA sir also came, everything became easy for us.

Vipul – Sir! Everything is fine… Anyway, I work very thoughtfully…

Narendra Kumar – Yes…it is so…just that tax and penalty have to be paid on short stock and there is also the matter of input credit.

Vipul – Sir! It happened by mistake… it was my friend’s factory… I also refused… but what has to be done in friendship… there was no intention of evading tax…

Narendra Kumar Okay brother… Look, whatever has happened has happened… you must face it… Come on brother, do something now. Corporate the government also. You have  violated the law in this case.

Vipul – CA sir! You look….

Narendra Kumar – I have accepted every reasonable thing said by CA sir… I have also heard your story… Now you listen to me very carefully. our have told that the goods went to your friend’s factory and I also accepted it.  But what about e-way bill? You also have a solution for this… If the survey had not happened today, you would have made 5 separate bills of Rs 2 lakh each… They would have also eliminated the hassle of e-bills… Now I don’t know what you would gain from this. What would have happened… This could be your standard practice or I can assume it to be so if you don’t cooperate… so end this hassle right here. This is in your best interest. You and your CA sir know the rest. Listen to me… Playing with the law is not allowed in GST.

Vipul – I am… let’s go… now I will have to agree with you… you tell me what has to be Deposited…

(Narendra Kumar writes something on a paper and then calculates something with the calculator he keeps… then passes the paper to Vipul…

Vipul- Sir! This is too much… Sir, please adjust something.

Narendra Kumar (In Lound Voice)- Adjustment !!!! What is this Adjustment !!!! How dare You !!!!! CA Sab !!! please  explain the law to Him What is this adjustment?

CA Rahul Sharma looks at the paper… then passes it to Vipul…

CA Rahul Sharma – Brother, there is no way. If you want to end the survey, accept it …

Vipul – Ashok ji, you have the password, please Deposit it. While submitting the challan, please confirm with the CA… Now if a mistake has been made then what can be done.

(sits down in disappointment)

Narendra Kumar – Come on Guys ! After depositing the money, Issue DRC-03 . I will take a look further towards the documents produced by you. In the case of 16 (4) and 36 (4), I will definitely give you notice. I prepare the rest of the papers, then get them signed and end the survey here….

Narendra Kumar Then looking at Vipul – CA Saheb…. He is feeling very disappointed. Please explain to him , He has got away very  cheaply… Cheer up Brother …… it is part of the Game. Be careful in future.

(Just then Ramu enters with breakfast and tea in a big tray. There is another boy with him, both serve tea and breakfast to everyone).