TMI BlogRegistrationX X X X Extracts X X X X X X X X Extracts X X X X ..... If Bank Interest Income is 18,00,000/- and Rent Income is 6,00,000/-. Is GST Registration Required as the total income is crossing 20L Threshold? Do we have to pay tax on 6,00,000/- Rent Income as Gross T/O 24L Exempted T/O 18L -- As Exemption Noft. 12/2017 CGST(R) entry#27 exempts services by way of extending deposits so far the consideration is represented by way of interest. - Reply By K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ASTURI SETHI - The Reply = Bank interest income on what account ? Pl.reply. - Reply By Pradeep Singhi - The Reply = As Exemption Noft. 12/2017 CGST(R) entry#27 exempts services by way of extending deposits so far the consideration is represented by way of interest. Since an entry is there in exemption notification which may classify bank deposits, can it not be said that the said turno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver is taxable however exempted vide 12/2017 . If it was not there in exemption notification it could have been assumed as Non-GST supply? - Reply By KASTURI SETHI - The Reply = All types of interest are not includible in the aggregate value for computation of threshold exemption limit for registration under GST Act. - Reply By Pradeep Singhi - The Reply = Any provision backing this view? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Thank you and greatly appreciate your prompt replies. - Reply By KASTURI SETHI - The Reply = Dear Sh.Pradeep Singh Ji, I have gone through your views expressed above. Still I am of the view that interest earned on account of non-GST business is not required to be included into the aggregate turnover to arrive at the threshold exemption limit. Every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thing is not always clear in law. It is implied that non-GST business has nothing to do with the jurisdiction of GST. If you obtain registration on the basis of above, you will commence paying GST from Re.One and will be entitled to ITC. You will pay GST on ₹ 4 lakhs (24,00,000 -20,00,000). What I think there must not be revenue loss, after all, rules and regulations or procedures are f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ramed to protect revenue. When we talk of various definitions such as consideration,exempt supply, aggregate turnover and exempt notifications, all point to the the jurisdiction of GST. Any item which is out of scope for GST network, cannot be dragged into GST network forcibly. Still if you have any doubt, you may seek ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vance ruling on this issue. - Reply By Alkesh Jani - The Reply = Sir, In this regards, the definition of service is given at Section 2 (102) of CGST /SGST Act, which means anything other than goods, money and securities, but includes exchange of currency from one form to another or denomination, for which separate consideration is charged. The term goods have been defined at Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 2(52) of CGST /SGST Act, and as per the definition, goods means all kind of movable property other than money and securities Based on above, I am of the view that, the interest income (in form of money) is neither supply of goods or supply of services for individuals, moreover, it should be for business or furtherance of business. I also agree with the views of our expert Sh. Kasturij ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. With Regards, - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = The interest received is not in the course of business. So it will not be included the transaction value. - Registration - Query Started By: - Pradeep Singhi Dated:- 6-4-2019 Goods and Services Tax - GST - Got 7 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Managemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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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