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GST RETURN NILL FILE BUT MORE THAN DEPOSIT IN BANK 1 CR

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RANJIT KARMAKAR

45 Points Posted on 24 August 2023

A dealer came to me, he having wholesale business of fruits (banana) also registered with GST, his accountant file NIL GST return through out last financial year 2022-23, but in Bank Current Account total cash deposit during the last financial year is more than 1.72 Crore. Income tax return till not file – please advise what to do now ?

Replies (3)

Quick Summary

A fruit wholesale dealer filed NIL GST returns for FY 2022-23, despite depositing over ₹1.72 crore in their bank account. While banana wholesale is GST exempt, this significant bank activity requires attention. The advice is to proceed with filing Income Tax Returns based on account books or opt for presumptive taxation if books aren't maintained. Clarification is sought on whether 'NIL GST' means no tax liability or no assessable value.

Abhishek Ranjan

Senior Accountant

37 Points Posted on 24 August 2023

Turnover from wholesale trade of banana is exempt under gst.
Can proceed to file ITR on basis of books of accounts. Also can opt for presumptive taxation, if books not maintained.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 24 August 2023

@ Ranjit,

Is nil GST means No tax liability or No Assessable value..??

Clear your query

Aashok Kumar Sharma

Finance/Compliance Consultant

75663 Points Posted on 08 November 2026

Fruit (banana) wholesaler with bank credits:
• Fresh fruits (bananas) are exempt from GST. A wholesaler dealing only in exempt goods files GSTR-3B and GSTR-1 showing exempt turnover (not "nil"). Filing nil returns while having actual exempt sales is misreporting.
• Registration isn't even required if supplying only exempt goods (Sec 23(1)(a)). The dealer can surrender the registration.
• Income-tax: bank deposits reflect business turnover. Under 44AD, declare 6%/8% of turnover (agricultural produce trading). Commission agents for fruits (arhatiyas) may earn commission, which is excluded from 44AD.