- Interest on deposits from bank is not business income. In ITR, we show it as income from other sources and not under business head.
20L aggregate turnover
Below is the Notification on which I have a doubt ---- "As per section 2(6) of CGST Act, “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" "As per Notification no. 12/ 2017 (central tax rate) dated 28.06.2017, services by way of extending deposits, loan or advances in so far as the consideration is represented by way of interest or discount is exempt under GST" ---- Question Our Income from Apartment Maintenance charges is 17 Lacs and our interest from Corpus is 3 Lacs PA - Should we take the Interest from Corpus for computing the aggregate turnover and register for GST? Few People tell me, Interest from Bank is not business income and need not be taken for 'aggregate turnover' but another section tells me we should be sighting the article above. Please advice what I should do.
Asked 4 years ago in GST
Hi
Interest income, though an exempt income, is to be included for calculation of aggregate turnover as exempt incomes are included in aggregate turnover definition.
Dear sir
As Per provisions of Sec 22 (1) read with Section 2 (6), this individual will have to take registration because his aggregate turnover exceeds INR 20 lacs. The definition of aggregate turnover includes exempt supplies
so for the purpose of calculating aggregate turnover we need to include exempt supply as well
Please rate 5 & provide valuable feedback so that I can improve my answer in future
Sir if we go by that rule then a residential society is never doing business so it should never take registration but that is not the case and you are supplying the service.
Also the amount you have invested in bank is from your receipts from resident of society. Hence talking from business point of view its business receipts that you have deposited in bank.
Hence I feel you need to take it into consideration while calculating turnover.
However practically speaking in case of individual people take it separately as they say that the amount deposited in bank FD is my personal money and not business income, however in any other case its always related to your business.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you.
Hello,
Interest Income, as exempt income, would be considered for the computation of the Aggregate Turnover under GST.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
As per section 2(6) of CGST Act, “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.
As per Notification no. 12/ 2017 (central tax rate) dated 28.06.2017, services by way of extending deposits, loan or advances in so far as the consideration is represented by way of interest or discount is exempt under GST.
As interest on fixed deposits covered under exempt supplies, it will be included in computation of aggregate turnover in GST.
Thank you so MUCH all of you for answering this question. Rated 5 for ALL A clarification required when we use the CORPUS Amount. 1. As per section 2(31) , if we use the Corpus Amount (deposited by the owners of the association) for repairs / renovation - We have to include it as income for that respective year? 2. If answer to above is 'Yes' - Then our current income like mentioned above is 16.5+3 and if I include 1L from corpus for repairs - Are we likely to cross the GST limit?
Asked 4 years ago
Hello Sir,
As per notification 12/2017 CT (rate), S.no.27, its exempted ( Note: its not Non GST) So as Fdr interest is exempted in GST , & as per the definition of aggregate turnover (section 2 CGSt act,) it will be add to calculate aggregate turnover
As per CBIC if you collect an amount and use it for repair same shall be liable for GST and if it's liable for GST it shall be included in turnover definition.
1. The nature of corpus fund is like capital account. It is not used regularly for the affairs of the society. I think it should not be included.
1. Yes.
2. Yes.
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