Taxability for Chit Fund Business

[VIGNESH]

Sir for the chit fund organization GST to be Levied on Forman commission,
What will be the Aggregate Turnover, Whether the chit total collection to be considered Or foremen commission to be considered for threshold limit ! What will be the Tax rate?

[KASTURI SETHI]

Amount of commission is to be considered. Chit fund collection belongs to the subscribers and not to Foreman. Foreman does not lend his money.

[Ganeshan Kalyani]

Commission to be considered for threshold.

AI Summary

Taxability of commission: GST threshold applies to foreman's commission, not total chit collections, for GST liability. The taxable measure for GST in a chit fund is the foreman's commission: commission receipts constitute the relevant consideration and are used to compute aggregate turnover for threshold and registration purposes, while total chit collections belong to subscribers and are not included in the foreman's taxable turnover.