Credit Transactions in Saving Bank Account exceeds ₹20 Lakhs

Dear Experts

A person is rendering the services of REPAIRING OF SUGARCANE CRUSHERS. All his transactions are initiated from his bank account.

Now, during the financial year 21-22, his credits in his bank account are ₹ 30,28,356 and his debits are ₹30,19,884 (90% of these debits are ATM cash withdrawals). Also, none of his single entry exceeds ₹50,000 at a time.

Most of the transactions in his bank account constitutes receipts and payments on behalf of other persons. These people pay him through UPI & he repays them back in cash (which is not related to his business at all). Therefore, his actual turnover during the year is around ₹18 lakhs only out of ₹30,28,356.

Now, please advise whether he is required to get himself registered under GST & if yes, then within what time frame?

Also, from this year onwards, he is not accepting these types of UPI payments from other persons in his bank account which are not related to his business and as expected, his turnover for this year also remains under ₹20 lakhs. So you can say that this crossing of ₹20 lakh limit is only a one time thing & not occurs in future.

Please advise....

Replies (1)
We need to maintain the accounts by showing that the receipts are just loan receipts and we paid them back. There are some adjustments entries required to be made and then we file the return showing the income below 20 lakhs. so that if any notice come in future then we can show the proof. I'm leaving the details in your inbox.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 21 September 2026
CA Article Assistant

KK & Company Chartered Accountant

Pune

CA Inter

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
18 September 2026
Accounts & Finance Specialist

ULTRA CHEMICAL WORKS

Thane

CA Final

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 18 September 2026
Industrial Trainee

Twenty Point Nine Five Ventures Private Limited

Noida

CA Inter

View Details
Company
14 October 2026
Accountant

Rize.farm

Bengaluru

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details