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Registration Requirements

13 March 2018

What if I earn income from salary of Rs 15 lakh package, interest from FD of Rs. 9 lakh. and I earned commission income of Rs. 12 lakh. Do I need to get registered under gst!? What constitutes exempt supply and supply not chargeable to tax for determining aggregate turnover of 20 lakhs for registration purpose!?

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10 Replies

CA Mayur Todmal (Practicing CA) (7751 Points)
Replied 13 March 2018

yes you have to apply for registration as your aggregate turniver exceedds 20lakhs (threshold limit for registartion) ( other than north-east state)
“Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess

and
Interest received from a local bank is payment for an exempt supply of financial service

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sunil mandal (63 Points)
Replied 13 March 2018

What if there is no FD income? . Do the result would remain same if a salary person with 15 lakh package has earned commission of 12 lakh.!? As salary is covered in schedule III that is deemed not supply.. An activity which is not supply itself should not be covered by exempt supply.. What's your view sir!?,

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 13 March 2018

Salary and FD interest not under the purview of GST... So, It's not included in Your Business income or Under Turn Over clause...

Here taken only Your commission income...
GST Registration is mandatory for Commission agent. As per your commission only atract GST...

Otherwise Your Salary and FD interest is not applicable GST...

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Shivam RC (Student) (23683 Points)
Replied 13 March 2018

I agree with Mr. Raja's explanation.
Salary and FD interest is not accounted for GST.

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sunil mandal (63 Points)
Replied 13 March 2018

Raja sir,
GST registration is compulsory for every person who makes taxable supplies of goods and services on behalf of another taxable person.
,but sir, where I do not supply anything for anyone, but I just make arrangement between 2 persons and I get commission of 1% of each transaction between them..!?, do I need to get registered for that also!?

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RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 13 March 2018

Yes... That's called Commission...

RAJA P M ("Do the Right Thing...!!!") (128085 Points)
Replied 13 March 2018

Yes... That's called Commission...

sunil mandal (63 Points)
Replied 14 March 2018

It is commission, but sir if I do not supply anything for anyone, but I just make arrangement between 2 persons and I get commission of 1% of each transaction between them? is registration is compulsory even then also!?

CA Mayur Todmal (Practicing CA) (7751 Points)
Replied 14 March 2018

But "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.