Wrong GSTIN, Big Loss: How a Small Mistake Almost Cost This Company Crores.

Introduction:

Wrong GSTIN, big loss—that’s exactly what B Braun Medical India Pvt. Ltd. experienced when a simple GST number error on a supplier’s invoice almost cost them ₹5.65 crore in Input Tax Credit (ITC). Even though the company received the goods, paid the vendor, and got the invoice in its name, the supplier entered the GSTIN of the wrong branch. This real case from 2025 doesn’t just highlight a legal win—it shows how important it is to set up strong GST processes. In this blog, you’ll learn what went wrong, how the Delhi High Court responded, and what steps you can take to protect your business from a similar mistake.

The Backstory: Where It All Started

• B Braun Medical India purchased medical products from Ahlcon Parenterals, which were delivered to its Delhi branch.
• The supplier mistakenly mentioned the Mumbai branch’s GSTIN on the invoice instead of Delhi’s.
• Under GST law, each branch in a different state requires a separate GST registration, and the GSTIN must match the location of delivery to claim ITC.
• Due to this mismatch, the GST department denied ₹5.65 crore of Input Tax Credit, despite the goods being received, payment made, and no fraudulent intent.

Year-wise Breakdown of Denied ITC:

What the Delhi High Court Said:

• The court noted that the company had:
  • Received the goods
  • Paid for the goods
  • Received the invoice in its name
  • Not claimed the ITC through any other branch
• The only issue was a clerical error—the supplier mentioned the wrong GSTIN.
• The court observed that such a small mistake should not result in a major loss when there was no fraud or duplicate claim.
• The court cancelled the tax demand and allowed B Braun to claim the full ₹5.65 crore ITC.

What You Should Do to Avoid This:

• Verify the GSTIN before booking invoices
  Always check if the GSTIN on the invoice matches the branch where the goods are received. This quick check can save you from major losses.
• Use accounting software with built-in GSTIN alerts
  Configure tools like Tally, SAP, or Zoho to flag mismatches between invoice GSTIN and the branch’s registration.
• Implement a maker–checker process
  Assign one person to enter invoices and another to review key details such as GSTIN, delivery location, and state code.
• Return incorrect invoices immediately
  If you receive an invoice with the wrong GSTIN, ask the supplier to correct it before you file your GST returns.

Conclusion:

The B Braun case clearly shows how a single clerical error—like mentioning the wrong GSTIN—can lead to a huge tax demand. While B Braun acted quickly and successfully reclaimed ₹5.65 crore in ITC, not every business may get the same opportunity.

Remember, GST compliance goes beyond filing returns. When you keep your documents accurate, your GST data clean, and your people informed, you reduce the chances of tax disputes and protect your business from unnecessary financial losses. Start fixing the small things today—because that’s what keeps your business safe tomorrow.

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This article is only a knowledge-sharing initiative and is based on the Relevant Provisions as applicable and as per the information existing at the time of the preparation. In no event, RMPS & Co. or the Author or any other persons be liable for any direct and indirect result from this Article or any inadvertent omission of the provisions, update, etc if any.

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