Page 117 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SAWAI MANOHARLAL RATHI 355
No. 27(a) of Notification No. 12/2017-C.T. (Rate) and Entry No. 28(a) of the No-
tification No. 9/2017-I.T. (Rate) income received from ‘Renting of immovable
property’ chargeable to GST - However, Applicant required to consider the
value of both the taxable supply, i.e., “Renting of immovable property” and
exempted supply of service provided by way of interest related income, to ar-
rive at “Aggregate Turnover” to determine the threshold limit of ` 20.00 Lakh
for the purpose of obtaining registration under the Goods and Services Tax
Act, 2017. [paras 14, 15]
Ruling in favour of department
REPRESENTED BY : S/Shri Hartik Vora & Sushil Kabra, for the Assessee.
[Order]. - Brief Facts : The applicant has submitted that he is an individ-
ual having not engaged in any business. His receipts are only from savings, per-
sonal loans and advances and deposits, which are reflected in the Income Tax
Returns.
2. The applicant has further submitted that his estimated receipts for
the F.Y. 2018-19 is likely to be totally Rs. 20,12,000/-, which includes, (i) Rent re-
ceipts : Rs. 9,84,000/-, (ii) Bank interest : Rs. 3,000/-, (iii) Interest on PPF deposit :
Rs. 2,76,000/- and (iv) Interest on Personal Loans and Advances : Rs. 7,49,000/-.
3. The applicant further submitted that their interpretation of law is
that if interest is received on loans and advances, deposits and savings Bank ac-
count by an individual person, who is not engaged in any such business and who
is not a money lender, then such Interest Receipts is not a Supply and does not at-
tracts GST, as the same is neither “In the course of Business” nor “In the furtherance of
Business”.
4. The applicant further submitted that he relies on the definition of
“Scope of Supply” given under Section 7 of the CGST Act, 2017, which clearly
states that the receipts should be “In the course or furtherance of Business”.
5. The applicant further submitted that the receipts from personal loans
and advances, deposits and Bank Interest are not covered under “Business” as
per the definition of “Business” given under Section 2(17) of the CGST Act, 2017.
6. In view of the above, the applicant further submitted that for the
purpose of calculating the threshold limit of Rs. 20.00 Lakh for obtaining registra-
tion under GST law, such interest receipts are not required to be aggregated.
7. In light of the above backdrops, the applicant is seeking an advance
ruling in respect of the following questions :
(1) Whether Interest received inform of PPF would be considered for
the purpose of calculating the threshold limit of Rs. 20.00 Lakh for
registration under GST Law?
(2) Whether Interest received on Personal Loans and Advanced to fami-
ly/friends would be considered for the purpose of calculating the
threshold limit of Rs. 20.00 Lakh for registration under GST Law?
(3) Whether Interest received on Saving Bank Account would be consid-
ered for the purpose of calculating the threshold limit of Rs. 20.00
Lakh for registration under GST Law?
8. At the time of personal hearing, the Authorised Representative of the
applicant reiterated the facts as stated in the Application and mentioned herein
above.
GST LAW TIMES  16th July 2020  117