Subject: GST Compliance Issue for New Sole Proprietorship (GTA) - Guidance Needed

Hello Experts,

I need guidance on a complex GST situation I've found myself in. I registered a sole proprietorship as a Goods Transport Agency (GTA) in West Bengal.

1. Background & Core Problem:

GST Registration Date: April 1, 2025.

Bank Account: I have one business bank account which is linked to my GSTIN., one saving account for personal home expenses which is not linked to GST .

Transactions: From April 2025 to July 2025, a total of ₹6,00,000 was credited to this account from a transport company. 1 lakh was transferred from my father account for handling vecahike expenses. 

My Explanation: This money is payment for my father's commercial vehicle, which was hired by the company. I am not the beneficiary; I was only managing the transactions (receiving the money and paying for vehicle expenses and my father) because I am more tech-savvy.

Filing Status: I have not yet filed any GST returns (GSTR-1 or GSTR-3B) for the period of April, May, June, and July 2025. The returns are now overdue.

2. The Financials:

Total Turnover (Apr-Jul 2025): ₹6,00,000

Calculated GST Liability (at 12% Forward Charge): ₹72,000

This is in addition to the late fees and interest for non-filing, which I estimate to be significant.

3. My Attempted Solutions & The Advice I've Received So Far:

I have been trying to find a legal way to handle this, as the money is not mine and has already been spent on expenses, making it very difficult for me to pay this liability. Here are the solutions I considered and the feedback I was given:

Idea #1: File NIL Returns.

My Rationale: Since the money is not my income, my sales are effectively zero.

Advice Received: This is not permissible. The money received in the business bank account is legally considered my business's turnover. Filing a NIL return would be a false declaration against the bank records and would lead to guaranteed scrutiny, penalties for fraud, and interest.

Idea #2: Use the ₹20 Lakh Threshold Exemption.

My Rationale: My annual turnover projects to ₹18 Lakhs (₹1.5 Lakhs/month x 12), which is under the ₹20 Lakh registration threshold. Therefore, GST should not be mandatory for me to pay.

Advice Received: The threshold is only for determining if a business needs to register. Once a business is voluntarily registered and has a GSTIN, the threshold becomes irrelevant. A registered person must pay GST from the very first rupee of taxable turnover.

Idea #3: Claim ITC on a Past Purchase (Two-Wheeler).

My Rationale: I bought a two-wheeler in my name in October 2024. I thought I could show this as a business expense and claim ITC.

Advice Received: This is not allowed. ITC on two-wheelers is a blocked credit under Sec 17(5). Furthermore, ITC cannot be claimed on assets purchased before the date of GST registration.

Idea #4: Use Future ITC to Offset This Past Liability.

My Rationale: I am planning to buy a heavy commercial goods vehicle in September 2025. I could use the large ITC from this purchase to pay off the tax due for the April-July 2025 period.

Advice Received: This is not possible. ITC generated in a particular month (e.g., September) can only be used to pay the GST liability for that same month or for future months. It cannot be applied retroactively to clear past dues. The liability for April-July 2025 must be paid in cash.

My Conclusion:

Based on all this, it appears I am in a position where there are no legal hacks or loopholes, and the tax liability of approximately ₹72,000 + fees + interest is unavoidable.

I am posting this to confirm if the advice I have received is correct and comprehensive. Is there any other legal provision I might be missing? Given the financial hardship, what is the most professional way to approach this matter with the department?

Thank you for your time and expertise.