GST implications on Drawings

[Kaustubh Karandikar]

XYZ is a Proprietory Concern. The proprietor is withdrawing amount from time to time from the Proprietory Concern’s Account and the same is shown as ‘Drawings’ in the books of accounts. However, details regarding the expenses made against the same is not available. Will this have any negative impact under the GST provisions such as GST liability?

AI Summary

Proprietor Withdrawals Recorded as 'Drawings' Have No GST Implications Due to Lack of Supply Activity. A proprietor of a proprietary concern is withdrawing funds from the business account, recorded as 'Drawings' in the financial records, without detailing the expenses incurred. A query was raised about whether this practice could lead to any negative GST implications or liabilities. The response clarified that since there is no supply or taxable activity associated with these withdrawals, there should be no GST levy or negative impact under the GST provisions.