Page 153 - GSTL_ 28th May 2020_Vol 36_Part 4

2020 ] IN RE : ANIL KUMAR AGRAWAL 599
“aggregate turnover” means the aggregate value of all taxable supplies (ex-
cluding 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 Ac-
count Number, to be computed on all India basis but excludes central tax,
State tax, Union territory tax, integrated tax and cess.
It is clearly evident from the above definition that the aggregate turnover is equal
to the sum of value of all taxable supplies, value of exempt supplies, value of
supplies towards export of goods or services or both and value of inter-State
supplies of persons having same Permanent Account Number, to be computed
on All India basis excluding the value of inward supplies on which tax is payable
by a person on Reverse Charge basis and also excluding the Central tax, State
tax, Union territory tax, Integrated tax and Cess.
7.5 It could be seen from above that the aggregate turnover is sum of
different supplies. Therefore any income to be included in the aggregate turno-
ver need to be related to any transaction that amounts to supply in terms of Sec-
tion 7(1)(a) of the CGST Act, 2017.
Section 7(1)(a) of the CGST Act, 2017 stipulates that any transaction must
consist the following three components to get qualify as ‘supply’.
(i) The transaction must involve a supply, of goods or services or
both, such as sale, transfer, barter, exchange, licence, rental,
lease or disposal made or agreed to be made.
(ii) The transaction must be for a consideration by a person.
(iii) The transaction must be in the course or furtherance of busi-
ness.
In view of the above, income received from each source has to be examined as to
whether it is in relation to any transaction that amounts to supply or not. There-
fore we consider different types of sources of income, one at a time.
7.6 Interest income received from different sources :
The applicant is in receipt of interest income from different sources as
mentioned at para 2 under (c), (d), (e), (f), (g), (h), (i), (j), (k), (1), (m), (n), (o), (p).
All these interest income are out of the deposits/loans extended by the applicant.
The services by way of extending deposits, loans or advances in so far as the con-
sideration is represented by way of interest or discount (other than interest in-
volved in credit card services), falling under SAC 9971, are exempted under En-
try No. 27(a) of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.
Thus the interest earned by the applicant, out of the deposits/loans/advances
extended, amounts to consideration and is exempted by virtue of entry number
mentioned supra. Therefore in the instant case extending the depos-
its/loans/advances by the applicant is nothing but exempted service and the
actual amounts of deposits/loans/advances become the value of the service.
Thus these amounts are to be included in the aggregate turnover for registration,
under the provisions of GST Act.
7.7 Partner’s salary, received as partner, from applicant’s partnership
firm :
The applicant is in receipt of certain amount termed as partner’s salary
from the firm where the applicant is also a partner. The applicant has not fur-
nished any documents relevant to the issue, such as copy of agreement, ap-
pointment order etc., so as to decide whether the applicant is an employee of the
partnership firm or not. In case, if the applicant is a working partner and is get-
GST LAW TIMES  28th May 2020  153