Salary as executive director not considered in Aggregate Turnover for GST Registration and GST on Salary

Last updated: 19 January 2023

Court :
Karnataka AAR

Brief :
Authority for Advanced Ruling Karnataka held that the incomes received from salary/remuneration as a Non-executive Director of a private limited company, renting of commercial property and renting of residential property and the values of amounts extended as deposits/ loans/ advances out of which interest is being received are to be included in the Aggregate Turnover for registration.

Citation :
IN RE ANIL KUMAR AGRAWAL

DATED: 4. 4.05.2020
IN RE ANIL KUMAR AGRAWAL
KARNATAKA AUTHORITY OF ADVANCED RULING

THE QUESTION INVOLVED

In this case was that which are the income which are to be included in Aggregate Turnover for registration?

FACTS OF THE CASE

The Applicant Mr. Anil Kumar Agarwal was an unregistered person who filed an application for Advance ruling under Section 97 of the CGST Act. He was receiving income from various sources like Salary as a Director from private company, Salary as partner from partnership firm, Income from renting of residential property, Interest on Loans, advances, post office savings, debentures and many more.

JUDGMENT

Authority for Advanced Ruling Karnataka held that the incomes received from salary/remuneration as a Non-executive Director of a private limited company, renting of commercial property and renting of residential property and the values of amounts extended as deposits/ loans/ advances out of which interest is being received are to be included in the Aggregate Turnover for registration.

The income received from the renting of residential property is also to be included in the aggregate turnover, though it is an exempted supply. It was also held that No GST is to be charged on Director's Remuneration of an Executive Director.