Interest on fd

This query is : Resolved

Vijay satvara (Querist)
Follow

15 December 2017 Does Interest on FD is my Outward Supply?
if yes,
Please give clarification.
Do i need to show it in GSTR 1?

Arun Kumar Singh

Arun Kumar Singh (Expert)
Follow

15 December 2017 no need to show interest on FD in GSTR-1.

Message likes : 1 times

Avinash Jeevan Dsouza

Avinash Jeevan Dsouza (Expert)
Follow

15 December 2017 No, you need not to show.

Message likes : 1 times

Vijay satvara

Vijay satvara (Querist)
Follow

15 December 2017 Can you please elaborate?

or what is the reason to exclude this we are supplying money to bank for their use and also getting consideration in term of INTEREST.

RAJA P M

RAJA P M (Expert)
Follow

15 December 2017 GST not applicable for Interest... Also it's not your outward supplies. Bcoz, You can't supply it to bank or any others...

Message likes : 2 times

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
Follow

16 December 2017 Interest on deposit is an exempt supply as per Not. 12/2017 (Central Tax -Rate)- Serial No. 27; Hence there should be no reason to exclude it from GSTR1 as exempt supply;

Message likes : 2 times

Vijay satvara

Vijay satvara (Querist)
Follow

16 December 2017 If i show it as a Exempt supply then i have to reverse the ITC.....

RAJA P M

RAJA P M (Expert)
Follow

16 December 2017 NO NEED SHOW IT UNDER GST RETURNS. DON'T BE CONFUSED...

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
Follow

16 December 2017 For common credit should be...and Mr. Raja what could be the reason for excluding it from exempt supply.. Do you have any legal supporting..

Vishakha Kejriwal.

Vishakha Kejriwal. (Expert)
Follow

16 December 2017 Further please note that Section 2(102) of the CGST Act “services” means anything other than goods, money and securities but
includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged;

Vijay satvara

Vijay satvara (Querist)
Follow

16 December 2017 Yes,Vishakha ma'am that is the issue that is can be said as service supplied to Bank (i.e Money) and in consideration we have recd. Interest so it should be shown in exempt supply in GSTR 1 and GSTR 3B also.

RAJA P M

RAJA P M (Expert)
Follow

16 December 2017 There is no sales or service involved in Bank Interest.
GST is applicable on Service Charges claimed by the Bank, but not on Interest...
Interest is exempted supply and no GST applicable on it...

RAJA P M

RAJA P M (Expert)
Follow

16 December 2017 https://www.quora.com/Is-GST-applicable-on-interest-in-bank-FDs-also

RAJA P M

RAJA P M (Expert)
Follow

16 December 2017 As per Section 2(108) of the Central Goods and Services Tax (CGST) Act, 2017, unless the context otherwise requires, the term “taxable supply” means a supply of goods or services or both which is leviable to tax under this Act.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now