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

Doctor's GST Registration Not Required: Hospital Income Exempt, Other Income Not Business-Related Under CGST Act. A doctor running an ENT hospital, whose income from the hospital is exempt from GST, inquires whether GST registration is necessary due to additional income from rental properties, capital gains, bank interest, FD interest, loan interest, PPF interest, and dividends, all exceeding 20 lakhs. Three responses clarify that GST registration is not required. The first response explains that 'aggregate turnover' under the CGST Act includes only taxable supplies, not exempt ones. The second response notes that personal income such as interest is not for business purposes. The third response states that businesses dealing exclusively in exempt supplies are not liable for registration.