The exempted supply for purpose of Rule 42 & 43 shall not include value of services by way of accepting deposits, extending loans or advances in so far as consideration is represented by way of interest or discount.
The exclusion is linked to consideration by way of interest or discount.
In view of this, my view is Rental / Security deposit (received / given) and staff loan given which are interest free will form part of exempted turnover both for purpose of arriving at “Aggregate Turnover” as well as for purpose of Rule 42 & 43.
Experts may give their view.
Rental Deposits and Loans Not Exempt Under GST Rules; Rental Income Subject to Tax, Clarifies Rules 42 and 43. A query was raised regarding whether rental/security deposits and interest-free staff loans should be considered part of exempt turnover under GST rules, specifically Rule 42 and 43. The initial opinion suggested these should be included as exempt supplies. However, responses indicated that transactions involving money, such as deposits and loans, are not classified as goods or services and thus are not exempt supplies. It was further clarified that rental income is subject to GST, and rental/security deposits cannot be treated as exempt income under GST definitions. (AI Summary)
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