Calculation of GST on aggregate turnover

[YUWRAJ KOTHARI]

A doctor provides this professional service in a hospital. such hospital provides details of his earnings after 11th of subsequent month. Further the doctor is earning monthly remuneration as partner in another firm. Also the doctor has various FD's maturity wherein many are for longer period than 12 months also there RD's maturity do not coincide with year end March. And the doctor has let out his 3 Commercial properties whereby earns monthly rent and pays GST on the same.

Query: For submitting monthly GSTR-1 and GST annual return how aggregate turnover be shown considering different services and earning though are exempt but per month calculation how can we made ?

[Alkesh Jani]

Shri

The aggregate turnover is defined at Section 2(6) of the CGST Act, 2017 and same is given below:-

“(6) "aggregate turnover" means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;”

From above, it is clear that for purpose of calculating aggregate turnover, all Taxable supplies are to be taken into account, but if only taxable value is declared in your GSTR-1 mis-match may take place between ITR and GSTR-1/3B. So in my point of view, you are to declare the exempted, nil rate and non-GST value at Table 8 of GSTR-1 and also at 3.1(c) & (e) of GSTR-3B. The same may be declared and reconciled at GSTR-9.

Hope this may satisfy your query.

In case of any doubt, please take help of professional near you.

Thanks

[Shilpi Jain]

Aggregate turnover will include the interest incomes, professional fees and rental income.

What is the specific doubt in the filing of returns?

[Rajan Atrawalkar]

It seems that you want to know how to file GSTR 1 in the given situation. The confusion seems to be regarding accounting of the income, receipts etc. Ideally, in case of professionals, I will suggest that accounting should be on "Cash" basis and not "Mercantile" to have a clear picture. In the given case, when the Hospital earnings are credited on 11th of the subsequent month, then, following "Cash" system, it would be accounted in the subsequent month only. Same is applied to all bank interest, FD interests. Credit the interest in the month of maturity or accounted in the Pass Book. If you follow "Cash" system of accounting for continuation then there will be no problem. 26AS may have minor mismatches which one can explain. While submitting Income tax Return mention "Cash System of Accounting" for all income heads. Following Cash system is practically beneficial where there are number of NSCs, KVPs, and postal deposits. Calculating Accrued interest becomes headache and many times mismatches occur at the time of maturity. Off course, this may have adverse effect if there are Bulk FDs. or postal Deposited in a single year and negligible deposits in the following years. Then you may need to change the strategy and adopt “Mercantile” system for "Interest" part. 

[Yash Shah]

According to section 2(6), Aggregate Turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis. Still, it excludes central tax, state tax, union territory tax, integrated tax, and cess.

Professional fees for providing services in a hospital: As per entry no. Section 74 of Notification No. 12/2017 (R), healthcare services by a clinical establishment, an authorised medical practitioner, or para-medics are exempt from GST. Thus, said services will be exempt from GST. However, the said exempt supply will be included in the calculation of aggregate turnover.

Monthly remuneration as partner:- As per section 7, the expression “supply” includes–

(a) all forms of supply of goods or services or both, such as sale, transfer, barter, exchange, licence, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business;

as supply shall be by a person to another person, but a partner and a partnership are to be considered a single person, and one cannot supply oneself. Taking the basis of this Remuneration received by the doctor from the partnership firm would not be construed as a supply under GST.

Interest from FD: As per entry no 27 of notification no 12/2017(R), Services by way of-

(a) extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services); are exempt from GST. Yet the said supply will be included in the calculation of aggregate turnover.

Rent from commercial properties: This is covered under entry no 16, Real estate services SAC 997212, rental or leasing services concerning industrial, commercial or other non-residential buildings or property by owners or leaseholders, such as factories, office buildings, warehouses, theatres, convention centres, exhibition halls and multiple-use buildings that are primarily non- residential; agricultural, forestry and similar properties. which attracts GST @18% and results in a taxable supply of services, which will be included in the calculation of aggregate turnover.

AI Summary

Doctor's GST turnover calculation includes hospital services, FD interest, rental income but excludes partnership remuneration under Section 2(6) (6) A doctor seeks guidance on calculating aggregate turnover for GST returns given multiple income sources: professional services at a hospital, partnership remuneration, fixed deposit interest, and commercial property rental income. Legal experts clarify that aggregate turnover under Section 2(6) of CGST Act includes all taxable, exempt, and export supplies. Hospital services are GST-exempt but included in turnover calculation. Partnership remuneration isn't considered supply as partners and partnerships are treated as single entities. Fixed deposit interest is exempt but counts toward turnover. Commercial property rental attracts 18% GST as taxable supply. Experts recommend cash-basis accounting for clarity and proper declaration of exempt/nil-rated supplies in GSTR-1 and GSTR-3B returns.