Sunil (Trader) 28 January 2019
Is the interest on saving bank and fixed deposit earned in personal capacity a a proprietor of a proprietorship concern to be shown in any column of the GSTR 1 or GSTR 3B. In case not shown what is the remedy and is any penalty payable even though the interest income is exempt?
pritesh (CA Final student) 29 January 2019
Interest earned from a local company or a local bank means that you have received a payment for a financial service’s exempt supply, which falls under Schedule IV of the Goods and Services Tax Act. The interest received will not be subject to GST. However, receipt of interest income will fall under “Income from other sources”, and income tax will have to be paid on it if you fall under its ambit.
Sunil (Trader) 29 January 2019
True this is exempt income. However, do we have to show it in GSTR 1 of proprietorship concern under exempt supplies. These items are in personal name and therefore are not in the books of account of the proprietorship concern. They are not part of P&L account made for proprietorship concern and are taxed as income from other sources in income tax.