TMI BlogSection 17(2) Rule 42X X X X Extracts X X X X X X X X Extracts X X X X ..... While filling GST annual return for FY 2019-20 assesse shown PPF interest, FDR interest of Rs 3,00,000 as exempt income in Table 5D of GSTR-9 . Assesse shown taxable Income of Rs 3 crore in GSTR-9 in table 4. Now the GST department issued DRC-01A notice for reversal of proportionate ITC Rs 32,400/- (i.e. 1% of total ITC Rs 32,40,000/-) as per section 17(2) read with rule 42 Q1 : Whether we have to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay the proportionate ITC or any remedy available to us. Please provide reference of Section, Rule, Case law. Q2: Normally we do not report the PPF interest and bank interest income in GSTR-1 . Is it compulsory to show bank interest in GSTR-9 . Thanks in advance - Reply By Sadanand Bulbule - The Reply = Dear Sir Section 17[2] speaks of also exempt supplies and not exempt income. Plz elaborate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... query - Reply By Amit Agrawal - The Reply = No reversal of ITC is required u/s 17(2) read with rule 42 43 against PPF interest FDR Interest earned by a tax-payer ( other than 'a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances' ) in view of explanation (1)(b) given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 43 of the CGST Rules, 2017 . In above-said explanation, it is clarified that the aggregate value of exempt supplies for such tax-payer shall exclude 'the value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount' for the purposes of rule 42 43 . These are ex facie views of mine and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same should not be construed as professional advice / suggestion. - Reply By KASTURI SETHI - The Reply = Sh.Komal Agarwal Ji, (i) I concur with the views of Sh. Sadanand Bulbule Ji, Sir. For correct and concrete reply, more details are required. Answer to query no. 1 : Every kind of interest is not exempt supply for the purpose of Rules 42 43 .. Read Explanation [1] (b) below Rule 43 (5) (applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble to Rules 42 43 both). You are required to focus on exceptions i.e. What is to be excluded and what is not to be excluded. Every kind of exempt supply is not to be included for the purpose of reversal under Rules 42 43 . Also read Explanation-3 of Rule 43 . So elaborate your query after going through the Explanations. Answer to query no.2 : YES. - Reply By Shilpi Jain - The Reply = You would ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve to disclose it as exempt income. However, as per explanation after rule 43 no requirement of reversal of ITC - Reply By Padmanathan Kollengode - The Reply = I agree with the views of Ld friend Amit Ji. No reversal is required in light of the explanation there to. I have got a fav order in adjudication level itself. - Section 17(2) Rule 42 - Query Started By: - Komal Agarwal Dated:- 29-4-2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Last Replied Date:- 3-5-2024 Goods and Services Tax - GST - Got 5 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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