GSTR 9C

• Bank interest is an exempt supply under GST.

• It should NOT be reported in GSTR-9 Table 5(d).

• It should be reported in GSTR-9 Table 5(F) – Exempt Supplies.

• In GSTR-9C, bank interest must be disclosed in Table 5 (Reconciliation of Gross Turnover) under “Other Income / Exempt Income”, and not in Table 9 (Tax Paid Reconciliation).

Bank Interest is not outward supply from the company is point of which is not engaged in the banking sector. Therefore, no such transactions to be reported in the GSTR-9. While filing GSTR-9C, it should be reported in the 5-O "Other Adjustements" as the definition of Turnover as per GSTR-9C includes normal turnover plus other income.

Bank interest on deposits (for a non-banking business):

• Interest is consideration for "extending deposits", but is exempt under Notf 12/2017-CT(R), Sl. 27. It is an exempt supply.

• GSTR-9: report it in Table 5D (exempted), not 5F (non-GST supply). Many taxpayers omit it, and the department has not insisted, but 5D is technically correct.

• GSTR-9C: since 9C reconciles turnover in the audited financial statements with GSTR-9, include the interest in the reconciliation (as part of turnover per books in Table 5A), and show any unreconciled item in Table 5O/5P as applicable.

• ITC reversal: for Rule 42/43, the value of exempt supply excludes interest on deposits, loans or advances, unless you are in the business of lending or banking (Explanation to Rule 43, which applies for Rules 42 and 43). So interest does not trigger a common-ITC reversal for a trading or manufacturing entity.

Bank interest is generally exempt from GST, so it should be disclosed as non-GST turnover in GSTR-9, Table 5D (exempted supplies), not in Table 5O, which is for other adjustments. In GSTR-9C, Table 5, report it under the appropriate non-taxable/exempt turnover classification; use Table 5O (“Other adjustments”) only if a reconciliation adjustment is needed, not merely because the accounts group interest under “Other income.” Check that the treatment is consistent with the return period’s applicable form and turnover reconciliation.

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