Suggestions on GST Implementation Issues 28.09.2017 by ICAI
42. Registration for Assessees with Aggregate Turnover Over Rs. 20 Lakhs
Section 22 on the CGST Act, 2017 provides that every supplier shall be liable to be registered
under this Act in the State or Union territory, other than special category States, from where
he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial
year exceeds Rs. 20 lakhs.
Section 7(1) of the CGST Act provides that “supply” includes all forms of supply of goods
or services or both such as sale, transfer, barter, exchange, licence, rental, lease or disposal
made or agreed to be made for a consideration by a person in the course or furtherance of
business.
Further section 2(6) of CGST Act, 2017 provides that (6) “aggregate turnover” means the
aggregate value of all taxable supplies (excluding 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 Account
Number, to be computed on all India basis but excludes central tax, State tax, Union territory
tax, integrated tax and cess;
Issue
In case a person is earning interest income from Fixed Deposit Receipts of Rs. 15 Lakhs and
a Rental income from renting of immovable property of Rs. 6 Lakh, he would need to take
registration and collect GST on rented property (as it covered under definition of supply).
However, interest income on FDR is not liable to GST. On inclusion of interest income in
aggregate turnover unnecessary burden is imposed on various assessees including senior
citizens who are at present not involved in carrying business and for that person complying
the law is very difficult.
Suggestion
It is suggested that for computing the aggregate turnover limit of Rs. 20 lakhs for mandatory
registration the income earned without any business motive not be considered.
Read Complete Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee in PDF
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