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Exempt Income is part of Total Turnover

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Kunal Ghode

Accountant

53 Points Posted on 25 November 2022

Dear Sir,

Kindly suggest whether income received from trading shares and mutual fund to be added in total turnover in GST to file GSTR9?

Regards,

Kunal

Replies (5)

Quick Summary

This discussion clarifies whether income from trading shares and mutual funds, capital gains, and insurance maturity amounts should be included in the 'total turnover' for GST purposes, specifically for filing GSTR-9. The consensus is that the sale of shares and mutual funds is not considered a supply of goods or services under GST and therefore does not form part of the general turnover. While it might be used for specific calculations like ITC reversal, it's generally reported in Income Tax Returns (ITR) rather than GST filings.

kl Bhavana

Student CA Final

422 Points Posted on 25 November 2022

Hi Kunal,
Total income as per P&L shall be reported in Table 5A of GSTR 9C.
Thanks,
Bhavana K L Chartered Acccountant

Kunal Ghode

Accountant

53 Points Posted on 25 November 2022

9C is not applicable to us because turnover is below 5 CR. I wanted to know whether we should consider other income like capital gain on shares & mutual funds, dividend, maturity amount of insurance policies etc. in total turnover to file GSTR 9. We have only supply 6lakh service to clients in F.Y.2021-22. Other income of Rs.1.23 Cr. are earned as capital gain on trading of Shares and mutual fund. So do we need to file GSTR 9?

kl Bhavana

Student CA Final

422 Points Posted on 25 November 2022

Hi Kunal,

If your aggregate turnover is less than or equal to 2crores then It is optional to file GSTR 9 for FY 2021 - 22. Please note that aggregate turnover includes Exempt supplies.

Hope this clarifies, if any further clarification required then please write mail at Bhavana @ lbkca.in.

Thanks
Bhavana K L
Chartered Accountant

CA Altamush Zafar

GST Consultant

15986 Points Posted on 25 November 2022

Sale of shares and mutual fund is not a supply of goods or sevices. So it is classified as not being supply and therefore does not form part of turnover.
Only for calculation of reversal of ITC the value is taken as 1% of sale value. Therefore its value is taken only for reversal of ITC and will not form part of turnover in general for GST purposes.