Inclusion or Exclusion of Interest on SB or FD or PPF or Loan given, in the Turnover for GST

Last updated: 06 August 2020

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Quick Summary

This article clarifies whether interest earned on savings accounts (SB), fixed deposits (FD), Public Provident Fund (PPF), or personal loans should be included in your aggregate turnover for Goods and Services Tax (GST) purposes. The key distinction lies in whether the interest is earned in a business capacity or a personal capacity. Interest earned as part of business activities is generally included, while interest earned personally is typically excluded as it doesn't constitute a 'supply' in the context of GST.

Court :
Gujarat AAR

Brief :
As per the Gujarat AAR Decision in case of Shree Sawai Manoharlal Rathi it has been ruled that Interest on PPF and SB and on Personal Loans and Advanced to family/friends would be considered while calculating the "Aggregate Turnover".

Citation :
GUJ/GAAR/R/2020/10

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1999

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3499

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4999

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CA Amit Harkhani

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My self is CA Amit Harkhani. Cleared CA Final in Nov 2014 attempt. Past Experience in Classic Marble Co. Pvt. Ltd. Now in CA Practice since July 2017.

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