AGGREGATE TURNOVER AND REGISTRATION

[KESHAV GROVER]

IF A PERSON IS EARNING INTEREST (ON FDR) FROM BANK OF RS.15.00 LAKHS AND GETTING RENT OF RS.6.00 LAKHS. THEN HIS AGGREGATE TURNOVER BECOMES 21.00 LAKHS. WHETHER HE IS LIABLE TO REGISTER FOR GST AND LIABLE TO GET REGISTERED UNDER GST?

[KASTURI SETHI]

Yes. Registration is required. See the definition of 'aggregate turnover' in CGST Act .Turnover of exempted service from business is to be included.

[KESHAV GROVER]

thanks sir

[SHARAD ANADA]

Refer sec 94 of Finance Act (2) 2019. WEF 01 Jan 2020

94. In section 22 of the Central Goods and Services Tax Act, in sub-section (1), after the second proviso, the following shall be inserted, namely:––

“Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Explanation.––For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.”

[SHARAD ANADA]

However till the date Notification in this regard is not issued by the Government

AI Summary

Aggregate turnover threshold determines GST registration when interest and rent are included in turnover.
Registration depends on aggregate turnover, which must include interest and rent for determining GST registration; the Finance Act amendment allows the Government to raise the registration threshold for suppliers exclusively of goods and expressly treats persons earning interest on deposits, loans or advances as exclusively goods suppliers for that threshold, but implementation awaits a government notification.