business- #Interest on PPF, savings bank included for calculating GST threshold: AARnewstolive - June 27, 2020 62 0 COMMENTS
New Delhi: The worth of exempted revenue sources, like curiosity on PPF, savings bank account and loans given to household and buddies, might be included together with taxable provides whereas calculating the brink restrict for acquiring GST registration.
The Authority for Advance Ruling (AAR) Gujarat bench has made this ruling which is prone to be challenged in courts. These revenue classes are exempt from tax.
Under the Goods and Services Tax regulation, companies and people are required to acquire GST registration if their mixture turnover is Rs 20 lakh or extra.
An individual not in any enterprise, had filed an software earlier than the Gujarat bench of AAR asking whether or not curiosity acquired from savings bank, PPF and loans and advances to household can be thought of for the aim of calculating threshold restrict of Rs 20 lakh for registration underneath GST regulation.
He disclosed within the software that his whole receipts in 2018-19 fiscal have been about Rs 20.12 lakh, together with lease receipt of Rs 9.84 lakh, whereas the remaining was curiosity on bank, PPF deposits and from private loans prolonged to family and friends.
The AAR, whereas ruling that curiosity revenue can be included for calculating registration threshold, stated that the applicant is required to contemplate the worth of each taxable provide i.e. “renting of immovable property” and exempted provide of service supplied by the use of extending deposits, loans or advances for which curiosity revenue was earned to reach at “aggregate turnover” to find out the GST threshold.
“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 aim of calculating the brink restrict of Rs 20 Lakh for acquiring registration underneath GST regulation,” the AAR stated.
This would indicate that retired senior residents, dwelling makers would wish to take GST registration.