Page 120 - GSTL_16th July 2020_Vol. 38_Part 3

358 GST LAW TIMES [ Vol. 38
28(a) of the Notification No. 9/2017 relates to services by way of extending deposits,
loans or advances in so far as the consideration is represented by way of interest.
13.5 The services regarding interest income are covered under the
above Notification. Therefore, such services are exempted from payment of GST
and the individual is not required to discharge GST on the activity of providing ser-
vices by way of extending deposits, loans or advances where the consideration is repre-
sented by way of interest. Therefore, in given case GST is not leviable on Interest
Income earned by the Applicant.
14. From the above, it is revealed that the applicant is an individual
with an annual turnover of more than Rs. 20 Lakh. Since this income is interest-
related, the turnover is exempt from GST. However, the Applicant also supplies
services of “Renting of immovable property” along with activity of providing ser-
vices by way of extending deposits, loans or advances where the consideration is
represented by way of interest. His turnover from the rent income is Rs. 9.84
Lakh and we know that this transaction (“Renting of immovable property”] is
chargeable to GST. However, his taxable turnover is only Rs. 9.84 Lakh. Going by
the definition of “aggregate turnover”, the Applicant is 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 extending deposits, loans or advances for
which they earned interest income, to arrive at “Aggregate Turnover” to determine
the threshold limit for the purpose of obtaining registration under the GST Act.
15. In view of the above, we conclude that the Applicant is required to
aggregate the value of exempted interest income earned by way of extending
deposits in PPF & Bank Saving accounts and loans and advances given to his
family/friends along with the value of the taxable supply i.e. “Renting of immova-
ble property” for the purpose of calculating the threshold limit of Rs. 20.00 Lakh
for obtaining registration under GST law.
16. In light of the foregoing, we rule as under -
RULING
Ques. 1 : Whether Interest received in form of PPF would be consid-
ered for the purpose of calculating the threshold limit of
Rs. 20.00 Lakh for registration under GST Law?
Answer : Answered in the Affirmative, as discussed above.
Ques. 2 : Whether Interest received on Personal Loans and Advanced to
family/friends would be considered for the purpose of calculat-
ing the threshold limit of Rs. 20.00 Lakh for registration under
GST Law?
Answer : Answered in the Affirmative, as discussed above.
Ques. 3 : Whether Interest received on Saving Bank Account would be
considered for the purpose of calculating the threshold limit
of Rs. 20.00 Lakh for registration under GST Law?
Answer : Answered in the Affirmative, as discussed above.

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