Credit Transactions in Saving Bank Account exceeds ₹20 Lakhs

Vaishali Deshwal (27 Points)

13 September 2022  

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....