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2020 (6) TMI 449
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....ipts for the F.Y. 2018-19 is likely to be totally Rs. 20,12,000/-, which includes, (i) Rent receipts: Rs. 9,84,000/-, (ii) Bank interest: Rs. 3,000/-, (iii) Interest on PPF deposit: Rs. 2,76,000/- and (iv) Interest on Personal Loans and Advances: Rs. 7,49,000/-. 3. The applicant further submitted that their interpretation of law is that if interest is received on loans and advances, deposits and savings Bank account by an individual person, who is not engaged in any such business and who is not a money lender, then such Interest Receipts is not a Supply and does not attracts GST, as the same is neither "In the course of Business" nor "In the furtherance of Business". 4. The applicant further submitt....
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....ioned herein above. DISCUSSION & FINDINGS: 9. We have considered the submissions made by the applicant in their application for advance ruling as well as at the time of personal hearing. 10. In this case, a moot point is to be decided as to whether interest received on deposit in Public Provident Fund (PPF), Personal Loans & Advances to family/friends and deposit in Saving Bank Accounts, would be considered for the purpose of calculating the threshold limit of Rs. 20.00 Lakh for registration under GST Law? 11. "Aggregate Turnover" is relevant to a person to determine the threshold limit to obtain registration under the Act (supply of Services or (goods and services both): Rs. 20 Lakh (Rs. 10 Lakh in case of supplies effected fro....
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....is no tax payable due to exemption notification. Whereas in case of NIL rated supply, the tariff is at NIL rate so there is no tax without the exemption notification. 12.4 Thus, the different kinds of supplies covered under the "aggregate turnover" are: (i) Taxable Supplies; (ii) Supplies that have a NIL rate of tax; (iii) Supplies that are wholly exempted from SGST, UTGST, IGST or Cess; and (iv) Supplies that are not taxable under the Act (alcoholic liquor for human consumption and articles listed in section 9(2) and in Schedule III); (v) Export of goods or services or both, including zero-rated supplies. 13. We further find that under GST, Supply is considered a taxable event for charging....
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.... on the recommendations of the Council, specify, by notification, the transactions that are to be treated as- (a) a supply of goods and not as a supply of services; or (b) a supply of services and not as a supply of goods. 13.2 Thus, the Supply includes sale, transfer, exchange, barter, license, rental, lease and disposal. If a person undertakes either of these transactions during the course or furtherance of business for consideration, it will be covered under the meaning of Supply under GST. 13.3 Supply has two important elements: a) Supply is done for a consideration; b) Supply is done in course of furtherance of business. 13.4 Notification No. 12/2017-Central Tax (Rate) and Notification No.9/....
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....regate turnover", the Applicant is required to consider the value of both the taxable supply i.e. "Renting of immovable property" and exempted supply of service provided by way of extending deposits, loans or advances for which they earned interest income, to arrive at "Aggregate Turnover" to determine the threshold limit for the purpose of obtaining registration under the GST Act. 15. In view of the above, we conclude that the Applicant is required to aggregate the value of exempted interest income earned by way of extending deposits in PPF & Bank Saving accounts and loans and advances given to his family/friends along with the value of the taxable supply i.e. "Renting of immovable property" for the purpose of calculating the threshold ....