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Interest income under GST

06 March 2019

Whether Interest income earned from banks and from loans to other person, need to consider for aggregate turnover calculation?

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182261 Points)
Replied 06 March 2019

Yes, if its your business.

No, of its your investment.

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Ninad Taralekar (83 Points)
Replied 06 March 2019

Any specific provision sir?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182261 Points)
Replied 06 March 2019

Definition of supply under GST ..... " ..... In furtherance/course of Business ......."

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Ninad Taralekar (83 Points)
Replied 06 March 2019

ok sir. thank you

Pankaj Rawat (GST Practitioner) (55052 Points)
Replied 07 March 2019

Even though it's earned towards non business activities , it's added to your aggregate Turnover calculation .
As per definition of Aggregate Turnover in section 2(6) CGST act it includes Exempted Income & As per Notification 12/2017 CT (R) , interest income from bank is Exempted.

Note : To calculate the threshold limit for composition dealer it's excluded by Order 1/2017 CT GST

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Ninad Taralekar (83 Points)
Replied 07 March 2019

@ pankaj sir, in that case no one can opt for composition according to that order. Beacuse mostly every dealer have atlease 1 saving bank account which generates interest income.

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