Page 35 - GSTL_2nd July 2020 _Vol 38_Part 1

2020 ] COMPONENTS OF AGGREGATE TURNOVER UNDER GST J9
(m) Interest income credited on PF account
(n) Accumulated Interest (along with principal) received on closure of
PF account.
(o) Interest income on PPF
(p) Interest income on National Pension Scheme (NPS)
(q) Receipt of maturity proceeds of life insurance policies
(r) Dividend on shares
(s) Rent on Commercial Property
(t) Residential Rent
(u) Capital gain loss on sale of shares.
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), (l), (m), (n), (o), (p). All these interest incomes are out of the de-
posits/loans extended by the applicant. The services by way of extending deposits,
loans or advances in so far as the consideration is represented by way of interest or
discount (other than interest involved in credit card services), falling under SAC
9971, are exempted under Entry No. 27(a) of the Notification No. 12/2017-C.T.
(Rate), dated 28-6-2017.
Thus, the interest earned by the applicant, out of the depos-
its/loans/advances extended, amounts to consideration and is exempted by vir-
tue of entry number mentioned supra. Therefore, in the instant case extending
the deposits/loans/advances by the applicant is nothing but exempted service
and the actual amounts of deposits/loans/advances become the value of the ser-
vice. These amounts are to be included in the aggregate turnover for registration,
under the provisions of GST Act.
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-
ting salary then the said salary is neither supply of goods nor supply of service in
terms of clause (1) of Schedule III of CGST Act, 2017. Further, in case if the appli-
cant is in receipt of the amount towards his share of profit from the said partner-
ship firm, then also the said income is not under the purview of GST as the share
of profit is nothing but application of money and hence the said salary is not re-
quired to be included in the aggregate turnover for registration under the provi-
sions of GST Act.

GST LAW TIMES  2nd July 2020  35