TaxTMI 
TaxTMI 
Interest paid by firm to its partners would be covered under defination of supply and so under aggregate T.O.?..pls guide or any relevant judgement for this
Interest on Partner's Capital under GST Exempt Supply?
25 Mar 2026 
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GST treatment of partner capital interest turns on supply characterization, exemption as interest, and inclusion in aggregate turnover.
Whether interest paid by a firm to its partners on capital contributed under the partnership deed constitutes a supply or an exempt service for GST purposes, and whether such interest is includable in aggregate turnover for registration threshold computation. The discussion considers whether the interest is consideration for use of money or an appropriation of profit, and notes the view that it may be treated as interest on advance or deposit and therefore exempt, while still being included in aggregate turnover as an exempt supply. (AI Summary)
Whether interest paid by a firm to its partners on capital contributed under the partnership deed constitutes a supply or an exempt service for GST purposes, and whether such interest is includable in aggregate turnover for registration threshold computation. The discussion considers whether the interest is consideration for use of money or an appropriation of profit, and notes the view that it may be treated as interest on advance or deposit and therefore exempt, while still being included in aggregate turnover as an exempt supply. (AI Summary)