Definition of turnover for Chit Funds for the purpose of arrive the tax liability under GST Act, 2017

[Veeresham Veerabomma]

Respected Kasturi Sir,

This is in continuation your valuable reply with regard to Chit fund aggregate turnover.

Amount of commission is to be considered. Chit fund collection belongs to the subscribers and not to Foreman. Foreman does not lend his money dated 24-09-2021 by you.

Kindly share if any supportive judgments with regard to definition of aggregate turnover of chit fund companies. According to me only foreman commission is aggregate turnover for the purpose of levy of GST. In my clients case the department assertion is subscription receipts are exceeded threshold limit hence liable for registration. The revenue has allotted a temporary registration to the person/company and levied the GST on foreman commission.

profound regards.

AI Summary

Debate on GST Act 2017: Should Foreman's Commission or Total Subscription Define Chit Fund Turnover? A discussion on a forum addresses the definition of turnover for chit funds under the GST Act, 2017. A user queries whether only the foreman's commission should be considered as aggregate turnover for GST purposes, as opposed to the entire subscription receipts. The department claims that subscription receipts exceed the threshold for registration, leading to GST imposition on the foreman commission. Another participant argues that the department's stance is incorrect, citing Supreme Court judgments that the taxable value should be the commission alone. The discussion highlights the need for clarity in defining aggregate turnover for chit funds.