TaxTMI 
TaxTMI 
Mr X. is having rental income from commercial property of 9 lakhs in F.Y. 2018-19 and interest income from loan given to parties is 12 lakhs. Is he liable to get registration.
Registration required or not
02 Aug 2019 
6 Replies 
1917 Views Asked by
GST registration threshold: exempt interest income excluded, registration depends on taxable turnover exceeding the threshold.
Interest on loans is an exempt service; the key issue is whether aggregate turnover for GST registration includes exempt supplies. One view treats the threshold as applying to taxable turnover only, preserving small supplier exemption; another relies on the Explanation that aggregate turnover includes all supplies, which would require clubbing exempt and taxable receipts for registration. Where taxable turnover remains below the threshold, registration should not be required for suppliers whose receipts are exempt interest, and uncertainty may be resolved by seeking an advance ruling. (AI Summary)
Interest on loans is an exempt service; the key issue is whether aggregate turnover for GST registration includes exempt supplies. One view treats the threshold as applying to taxable turnover only, preserving small supplier exemption; another relies on the Explanation that aggregate turnover includes all supplies, which would require clubbing exempt and taxable receipts for registration. Where taxable turnover remains below the threshold, registration should not be required for suppliers whose receipts are exempt interest, and uncertainty may be resolved by seeking an advance ruling. (AI Summary)