Answer

1. F

   Facts

   Mixing personal and business receipts makes your turnover look higher and harder to explain. Keep a separate UPI ID and bank account for the business.

2. P

   Provisions and law

   • Sec 35(1), CGST Act 2017Every registered person keeps true and correct accounts of production, stock, inward and outward supplies, ITC and output tax at the principal place of business
   • Rule 56, CGST Rules 2017Details of records: supplies, stock, advances, tax paid, ITC and names of suppliers and buyers, kept at each place of business
3. A

   Analysis

   Sec 35 asks for true and correct accounts of supplies. If family transfers, loan repayments and sales come into one account, the department may treat all credits as sales. Example: ₹30 lakh credited in a year, of which ₹8 lakh was family money; without records you may have to prove ₹8 lakh was not sales. A separate business QR and account solves this.

4. C

   Conclusion

   1. 1Open a separate current or savings account for the shop.
   2. 2Get a separate business UPI QR linked to it.
   3. 3Note non-sale credits in the old account with reasons.
   4. 4Keep the sales register tied to the business account.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.