GST Registration

[Kaustubh Karandikar]

XYZ is a Doctor (Proprietor) is running an ENT Hospital. Apart from his income from the hospital which is exempted from GST, he is also earning through Residential premises given on rent, capital gains, bank interest, FD interest, interest on loan given to a company, interest on PPF and dividend. All these incomes including from the hospital are exempted but is crossing the threshold limit of ₹ 20 Lacs. Is XYZ required to obtain GST Registration?

[KASTURI SETHI]

Not required. See the definition of the term, "Aggregate turnover" under Section 2(6) of CGST Act,2017.

6) “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;

There is a comma before and after 'exempt supplies' and NOT 'or'. One has to consider, the term."taxable supplies". The term, "taxable supplies' cannot be skipped.

[DR.MARIAPPAN GOVINDARAJAN]

Interest on FD, PPF etc., are for the purposes of personal income not for furtherance of business. Registration is not required.

[HariKishan Bhonagiri]

As per Section 23(1) says if exclusively engaged in the business of supply of goods or services that are not liable to tax or wholly liable from tax are not liable for registration

AI Summary

Aggregate turnover determines GST registration; exempt supplies and personal income exclusions mean no registration where only non-taxable receipts arise. Registration depends on the composition of aggregate turnover: taxable supplies determine GST liability. Receipts that are wholly exempt or personal income not made in furtherance of business (such as interest on FDs/PPF, dividends, capital gains, rent for residential property, and exempt hospital receipts) do not compel registration. A person exclusively engaged in exempt or non-taxable supplies is not required to register under the GST framework even if total receipts exceed the monetary threshold, so long as those receipts are not taxable supplies.