02 April 2020
As per following ex[planation to section 10(1) of the CGST Act, interest received on cash loans extended to customers is not to be included in turnover for calculation of composition tax. “Explanation.–– For the purposes of second proviso, the value of exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount shall not be taken into account for determining the value of turnover in a State or Union territory.”;
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