Page 118 - GSTL_16th July 2020_Vol. 38_Part 3

356 GST LAW TIMES [ Vol. 38
Discussion & findings
9. We have considered the submissions made by the applicant in their
application for advance ruling as well as at the time of personal hearing.
10. In this case, a moot point is to be decided as to whether interest re-
ceived on deposit in Public Provident Fund (PPF), Personal Loans & Advances to
family/friends and deposit in Saving Bank Accounts, would be considered for
the purpose of calculating the threshold limit of Rs. 20.00 Lakh for registration
under GST Law?
11. “Aggregate Turnover” is relevant to a person to determine the
threshold limit to obtain registration under the Act (supply of Services or (goods
and services both): Rs. 20 Lakh (Rs. 10 Lakh in case of supplies effected from spe-
cial category states).
12. Section 2(6) of the Central Goods & Services Tax Act, 2017 defines
the term “aggregate turnover” as under :
“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.”
12.1 We find that the “aggregate turnover” is an all-encompassing term
covering all the supplies effected by a person having the same PAN. It specifical-
ly excludes :
• Inward supplies effected by a person which are liable to tax under
reverse charge mechanism; and
• Various taxes under the GST law, Compensation cess.
12.2 “Exempt supply” is defined under Section 2(47) of the CGST Act,
2017 (hereinafter referred as “The Act”) as reproduced below -
“Exempt Supply” means supply of any goods or services or both which at-
tracts nil rated of tax or which may be wholly exempt under Section 11, or
under Section 6 of the Integrated Goods and Services Tax Act, and includes
Non-Taxable supply.
12.3 “Nil rated supply” is nowhere defined in GST Law. The basic differ-
ence between nil rated and exempt supply is that the tariff is higher than 0% in
case of exempt supply. But there is no tax payable due to exemption notification.
Whereas in case of NIL rated supply, the tariff is at NIL rate so there is no tax
without the exemption notification.
12.4 Thus, the different kinds of supplies covered under the “aggregate
turnover” are :
(i) Taxable Supplies;
(ii) Supplies that have a NIL rate of tax;
(iii) Supplies that are wholly exempted from SGST, UTGST, IGST or
Cess; and

GST LAW TIMES  16th July 2020  118