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Interest income to be considered for calculating threshold limit

Interest income to be considered for calculating threshold limit

The value of exempted income, like interest on PPF, savings bank account and loans given to family/friends, will be included with taxable supplies while calculating the threshold limit for obtaining GST registration, the Gujarat Bench Authority for Advance Ruling (AAR) has said.

  • Under GST, the threshold limit for registration is aggregate turnover of Rs. 20 Lakhs or more. An individual filed an application with Gujarat Bench of AAR asking whether interest received from saving bank, PPF and loans and advances to family members would be considered for the purpose of calculating threshold limit of Rs. 20 Lakhs for GST registration. He was having a total receipts in 2018-19 of Rs. 20.12 Lakhs, which includes rent receipt of Rs. 9.84 Lakhs, while remaining was interest on bank, PPF deposits and other personal loans extended by him to family members.
  • The AAR stated that the applicant is required to consider the value of both taxable supply i.e. "renting of immovable property" and exempted supply of service in form of extending deposits, loans and advances for which he earned interest income, to arrive at "aggregate turnover" to determine threshold limit for obtaining GST registration.

Read Further at: https://economictimes.indiatimes.com/news/economy/policy/interest-on-ppf-savings-bank-deposit-to-be-included-for-calculating-gst-registration-threshold-aar/articleshow/76447407.cms

 

 

 

Gujarat AAR

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