🧾 GST Update – Clarifying a Common Misconception on Applicability
10
May
Recently, a client asked an interesting question:
"I’ve obtained GST registration and provided Bank A’s details. If I receive business payments in Bank B, is GST still applicable?"
👉 The answer is YES.
Once you’re registered under GST, all business-related sale proceeds, irrespective of which bank account they are received in, are liable to GST. GST liability is not account-specific—it's business-specific.
✅ Personal transactions (like paying rent for your personal residence or family expenses) are not subject to GST.
🔄 Also important: GST applies to all businesses operated by a registered person.
For example, if you register under GST for your manufacturing unit, your trading business is also covered—even if you didn’t mention it during registration.
📌 A relatable example:
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If you pay an Advocate for personal litigation, GST is not applicable.
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But if the legal fee relates to a business dispute, you must pay GST under RCM.
💡 Moral of the story: GST compliance is about the nature of the transaction, not the bank account or the business vertical.
Need help understanding your GST applicability ? 📩 Reach out to us at info@fintaxcraft.com
