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Registration

16 March 2018

If I am earning income of Rs. 18 lakh from FD and Rs 4 lakh from professional services. Do I need to get registered under gst act as aggregate turnover from registration purpose u/s 2(6) includes exempt income also..???????

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8 Replies

CA Urvi Gandhi (.) (347 Points)
Replied 16 March 2018

Dear Sunil,

AGGREGATE TURNOVER means aggregate value of all taxable supplies. You are getting Income from Fixed Deposit. You are not providing any services.

Hence you are not liable to register.

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Rahul Prasad (CA Student) (1683 Points)
Replied 16 March 2018

Agree with urvi mam, interest income from bank will not included in turnover.

sunil mandal (63 Points)
Replied 16 March 2018

Thank you for your reply, but as per section 2(6)
Aggregate turnover means the aggregate value of all taxable supplies(excluding the value of inward supply on which tax is payable by a person on reverse charge basis) , exempt supply, exports of goods or service or both and inter-state supplies of person having same PAN, to be computed on all India basis but excludes central tax, state tax, Union territory tax, integrated tax and cess.
So, exempt supply shall also be covered under the term aggregate turnover.
Is income from FD not covered under point 27 of Notification 12/2017 (list of exempt supply).??

CA Urvi Gandhi (.) (347 Points)
Replied 16 March 2018

Dear Sunil,

Supply definition doesnt include FD. Hence, no question of FD falling under exempt supply

CA Mayur Todmal (Practicing CA) (7751 Points)
Replied 16 March 2018

"Giving loan or deposit is supply of service. It is exempt only if the consideration is by way of interest"

and exempt supply is to be considered while calculating aggregate turnover

Notification No. 12/2017- Central Tax (Rate) (Heading 9971) exempts interest from GST.

And Order No. 01/2017-Central Tax states specifially: "in computing his (person opting for composition) aggregate turnover in order to determine his eligibility for composition scheme, value of supply of any exempt services including services 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"

i.e. it is excluded from calculating agg turnover of compo scheme dealer only.

It's just my personal opinion

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sandip (article) (36 Points)
Replied 16 March 2018

dear Sunil, in gst interest received by the register person is not a supply, meaning there by no GST

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 16 March 2018

As per section 2(6), taxable & exempted supplies added to calculate aggregate income.
Now interest is not a non gst but it's exempted by Notification, so as per above query registration is compulsory as the aggregate income exceeds to 20lac