GST on Partners Remuneration and Interest

[Krishna Murthy]

Sir, is GST applicable on amount received by partners from the partnership firm as Remuneration and Interest. Whether the same fall under the definition of 'supply' under GST? If yes whether the same are exempt supplies?

AI Summary

GST Not Applicable on Partner Remuneration and Interest: Considered Self-Service, Not Supply. Check AAR Decisions for Specifics. A discussion on whether GST applies to remuneration and interest received by partners from a partnership firm concluded that GST is not applicable. The rationale is that such transactions are considered as self-service and not a supply under GST, as partners and the firm are treated as one entity. Therefore, these transactions are outside the scope of aggregate turnover and GST registration requirements. However, it is suggested to consult decisions of Advance Ruling Authorities (AARs) and relevant case laws, as the applicability may depend on the specific terms of the partnership agreement.