Interest income

interest is not covered under gst regime

But if exempt income +taxable supply is more than twenty lacs, shouldn't the company register?

interest income is out of gst regime so it is not supply in gst

Yes, registration is required.

Interest income is exempt but why should it not be considered as supply?

it is neither supply of goods nor supply of services.

Why had it then been included in exempt supply list

where??

where??

Clause 27of exemption list

The act defines goods and services to exclude "transactions in money". However, such "transaction in money" is for consideration, then it shall be Taxable as Supply.

The earlier Service Tax specially excluded levy of ST on banking transactions through negative list. However, no such explicit exemption has been provided under GST, rather GST Act simply mentions Goods and/Services doesn't include "transactions in money". The list of exempted goods/services doesn't specifically exclude interest.

This is vague and no clarification issued by Dept whether interest on a loan/dep shall be considered as "Consideration towards transaction in money" and is it Taxable. If such interest is held to be Taxable, then if such interest income exceeds ₹. 20L, registration is required.

In my opinion, there is ambiguity regarding taxation on interest income and awaiting for clarification.

I agree there is ambiguity. But if you look at #8, then interest income is specified as exempt https://www.indiafilings.com/learn/gst-exemption-list-services/

Thanks Mr. Debi. I to know now.

Welcome. And it's Ms Debi