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GST limit for service provider

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Rajat Sharma

23 Points Posted on 21 July 2023

Professional service income is 18 lakhs and income from interest is 4 lakhs. Is the GST limit exceeded in this case?

Replies (4)

Quick Summary

This discussion addresses whether a service provider has exceeded the GST registration limit. With professional service income at 18 lakhs and interest income at 4 lakhs, the question is whether this combined income necessitates GST registration. It's suggested that interest income, potentially from loans, savings accounts, or FDs, might be treated separately from professional income, potentially allowing the provider to remain below the GST threshold.

RAJA P M

"Do the Right Thing...!!!"

77833 Points Posted on 21 July 2023

Interest from...???

NARENDRA

ACCOUNTS MANAGER

1041 Points Posted on 25 July 2023

Interest income is not your professional income so i think & if you want ,you can still get away from the gst registrations . Please correct me if I am wrong.

Rajat Sharma

23 Points Posted on 25 July 2023

@ Raja P M

From loan given to friend, form savings bank and from FD

Aashok Kumar Sharma

Finance/Compliance Consultant

75668 Points Posted on 08 November 2026

Interest counts as exempt turnover:

• Aggregate turnover (Sec 2(6)) includes exempt supplies. Interest on deposits or loans is an exempt supply (Notf 12/2017 Sl. 27), so it's included in aggregate turnover.

• Professional services Rs 18 lakh + interest Rs 4 lakh = Rs 22 lakh, exceeding Rs 20 lakh. So registration is required.

• Exceptions: CBIC's FAQ and Explanation to Sec 22 exclude the value of supplies on which tax is payable under RCM. Interest on FDs isn't excluded, though some argue interest on savings accounts (not a "supply" by the individual) shouldn't count.

• Once registered, GST is charged only on the professional services (18%). Interest remains exempt.