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GST on Partners Remuneration and Interest, Goods and Services Tax - GST

Issue Id: - 115497
Dated: 6-10-2019
By:- Krishna Murthy
GST on Partners Remuneration and Interest

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Sir, is GST applicable on amount received by partners from the partnership firm as Remuneration and Interest. Whether the same fall under the definition of 'supply' under GST? If yes whether the same are exempt supplies?

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Showing Replies 1 to 4 of 4 Records

1 Dated: 6-10-2019
By:- atul rathod

No, GST is not liable on remuneration received by partner as the same will be treated as transaction in money. And also could it shall be treated as self service as partners and firm would be treated as one in terms of partnership act I understand.

2 Dated: 6-10-2019
By:- Ganeshan Kalyani

In my view, GST is not applicable.

3 Dated: 6-10-2019
By:- Krishna Murthy

Thanks for your reply. In that case, since partners and firm are same, both remuneration and interest are outside the ambit of supply and hence cannot even be considered for aggregate turnover. Can we take that view? In our case, if the both are considered for aggregate turnover, the partner would be required to obtain registration and hence liable to tax.

4 Dated: 7-10-2019

Dear Querist,

In your view, such remuneration and interest must be an integral part of 'non-supply' (should be part of Schedule-III) in order to avoid being included into the aggregate turnover. Hence you are not satisfied with 'exemption' or non-applicability of GST. Both are not part of Schedule-III. You will have to take shelter of decisions of AARs and case laws. It also depends upon the terms and conditions of the agreement. So case laws/decisions of AARs have to be read with the agreement.


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