|
II. GST Update:
1. Shree Sawai Maohar Lal Rathi, GUJ/GAAR/R/2020/10, Dt. 19-04-2020
Facts of the case,
The
applicant has submitted that he is an individual having not engaged in
any business. His receipts are only from savings, personal 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 receipts: 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 account 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 attracts 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 registration 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:
- Whether
Interest received in form of PPF would be considered for the purpose of
calculating the threshold limit of Rs.20.00 Lakh for registration under
GST Law?
- Whether
Interest received on Personal Loans and Advanced to family/friends
would be considered for the purpose of calculating the threshold limit
of Rs.20.00 Lakh for registration under GST Law?
- 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?
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.
HELD:
Interest received on PPF account, on personal loans and advances and
savings bank accounts, rent receipts will be clubbed in calculating
the threshold limit of Rs 20 lakhs for getting registration under GST.
Meaning
thereby, several persons who are having small receipts on which GST
is leviable and having receipts which are exempt from GST, both of
which will be clubbed for the purpose of calculating threshold limit of
Rs 20 lacs for applying GST registration.
(Please click here for Order)
[ Contribution by CA. Vijay Gupta Ji ]
|
New User? 
Subscribe Now