TMI Blog2020 (6) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... es are exempted from payment of GST and the individual is not required to discharge GST on the activity of providing services by way of extending deposits, loans or advances where the consideration is represented by way of interest. Therefore, in given case GST is not leviable on Interest Income earned by the Applicant. The applicant is an individual with an annual turnover of more than ₹ 20 Lakh. Since this income is interest-related, the turnover is exempt from GST. However, the Applicant also supplies services of Renting of immovable property along with activity of providing services by way of extending deposits, loans or advances where the consideration is represented by way of interest. His turnover from the rent income is & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - GUJ/GAAR/R/2020/10 (In Application No. Advance Ruling/SGST&CGST/2018/AR/50) - - - Dated:- 19-4-2020 - SANJAY SAXENA AND MOHIT AGRAWAL MEMBER Present for the applicant : Shri Hartik Vora Shri Sushil Kabra BRIEF FACTS The applicant has submitted that he is an individual having not engaged in any business. His receipts are only from savings, personal loans and advances and deposits, which are reflected in the Income Tax Returns. 2. The applicant has further submitted that his estimated receipts for the F.Y. 2018-19 is likely to be totally ₹ 20,12,000/-, which includes, (i) Rent receipts: ₹ 9,84,000/-, (ii) Bank interest: ₹ 3,000/-, (iii) Interest on PPF deposit: ₹ 2,76,000/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ST Law? 2. Whether Interest received on Personal Loans and Advanced to family/friends would be considered for the purpose of calculating the threshold limit of ₹ 20.00 Lakh for registration under GST Law? 3. Whether Interest received on Saving Bank Account would be considered for the purpose of calculating the threshold limit of ₹ 20.00 Lakh for registration under GST Law? 8. At the time of personal hearing, the Authorised Representative of the applicant reiterated the facts as stated in the Application and mentioned herein above. DISCUSSION FINDINGS: 9. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly is defined under Section 2(47) of the CGST Act, 2017 (hereinafter referred as The Act ) as reproduced below- Exempt Supply means supply of any goods or services or both which attracts nil rated of tax or which may be wholly exempt under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes Non- Taxable supply. 12.3 Nil rated supply is nowhere defined in GST Law. The basic difference between nil rated and exempt supply is that the tariff is higher than 0% in case of exempt supply. But there is no tax payable due to exemption notification. Whereas in case of NIL rated supply, the tariff is at NIL rate so there is no tax without the exemption notification. 12.4 Thus, the differe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anything contained in sub-section (1), (a) activities or transactions specified in Schedule III; or (b) such activities or transactions undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities, as may be notified by the Government on the recommendations of the Council, shall be treated neither as a supply of goods nor a supply of services. (3) Subject to the provisions of sub-sections (1) and (2), the Government may, on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. 13.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this income is interest-related, the turnover is exempt from GST. However, the Applicant also supplies services of Renting of immovable property along with activity of providing services by way of extending deposits, loans or advances where the consideration is represented by way of interest. His turnover from the rent income is ₹ 9.84 Lakh and we know that this transaction ( Renting of immovable property ) is chargeable to GST. However, his taxable turnover is only ₹ 9.84 Lakh. Going by the definition of aggregate turnover , the Applicant is required to consider the value of both the taxable supply i.e. Renting of immovable property and exempted supply of service provided by way of extending deposits, loans or advances for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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