Ranvir Sinh ParMar
As per section 2(6) of CGST / SGST act "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by person on reverse charge basis), exempt supplies, export of goods and services or both and inter state of supplies of person having same pan number, to be computed on all India basis but exclude central tax state tax , union territory tax, integrated tax and cess.
1) thus stock transfer from branch located in one state to the one located another state will be included in the turnover because of interstate of supplies having same pan number included in definition.
2) the term aggregate turnover is include the exempt turnover.
- as per CGST Act, exempt turnover includes supply of any goods or services or both which attract nil rate of tax or which wholly exempt from tax under section-11 or under section -6 of IGST act. and include non taxable supply.
Non taxable supply is supply of goods and services which is not chargeable to tax under either CGST act or SGST act. thus any goods or services fall under exempt turn over definition it will be automatically part of the GST turnover.
3) Interest received on deposit of PPF account, personal loan or advance to family / friend and deposit in saving bank account would be considered for the purpose of calculating threshold limit of GST turn over. Considered In Re Shree Sawai Manoharlal Rathi (GST AAR Gujarat)
Notification No. 12/2017-Central Tax (Rate) and Notification No.9/2017-Integrated Tax (Rate), both dated 28.06.2017,as amended, provides a list of services exempted from payment of Central Tax on intra-State supply and Integrated Tax on Inter-State supply. Entry 27(a) of the Notification No. 12/2017 and Entry 28(a) of the Notification No. 9/2017 relates to services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest.
4.The services regarding interest income are covered under the above Notification. Therefore, such services 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.
5.. From the above, it is revealed that the applicant is an individual with an annual turnover of more than Rs.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 Rs.9.84 Lakh and we know that this transaction (“Renting of immovable propertyl is chargeable to GST. However, his taxable turnover is only Rs.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 which they earned interest income, to arrive at “Aggregate Turnover” to determine the threshold limit for the purpose of obtaining registration under the GST Act.
6. In view of the above, we conclude that the Applicant is required to aggregate the value of exempted interest income earned by way of extending deposits in PPF & Bank Saving accounts and loans and advances given to his family/friends along with the value of the taxable supply i.e. “Renting of immovable property” for the purpose of calculating the threshold limit of Rs.20.00 Lakh for obtaining registration under GST law.
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