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?

[Shilpi Jain]

When there is no activity / supply there should not be a levy. I do not see a reason why the drawings would have any negative impact under GST.

AI Summary

No supply, no GST levy: proprietory drawings do not attract GST where no taxable supply or activity exists. GST applies only when there is an activity or a taxable supply; absent any activity or supply, there should be no GST levy, and mere proprietor drawings without underlying supply do not attract GST.