Dealer receiving interest may not be eligible for composition scheme : ICAI

By | October 6, 2017
(Last Updated On: October 6, 2017)

Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Law Related Issues

22. Eligibility for Composition Scheme to dealers when they are receiving Interest Income.

Section 10(2)(a) of CGST Act, 2017 provides that the registered person shall be eligible to
opt under sub-section (1), if he is not engaged in the supply of services other than supplies
referred to in clause (b) of paragraph 6 of Schedule II.

Issue

Interest received on any amount appears to be a service and has been provided exemption
under the exemption notification. Therefore, there is a doubt that in case dealer receives
interest then he may not be eligible for composition scheme.

Suggestion

It is suggested that it be suitably clarified that in case a dealer receives interest the he
would be eligible for opting Composition Scheme. Similar clarity is also required for
inclusion/exclusion of non-operational income e.g. interest/dividend while calculating
aggregate turnover for computing limit of Rs. 20 L for registration purpose under Section 22 & Section 24 of CGST Act,2017

 

Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee

Related Topic on GST 

TopicClick Link
GST Acts Central GST Act and States GST Acts
GST RulesGST Rules
 GST FormsGST Forms
GST RatesGST Rates
GST NotificationsGST Act Notifications
GST CircularsGST Circulars
 GST JudgmentsGST Judgments
GST Press ReleaseGST Press Release
GST BooksBest Books on GST in India
GST CommentaryTopic wise Commentary on GST Act of India
GST You Tube ChannelTaxHeal You Tube Channel
GST Online CourseJoin GST online Course
GST HistoryGST History and Background Material
Category: GST

About CA Satbir Singh

Chartered Accountant having 12+ years of Experience in Taxation , Finance and GST related matters and can be reached at Email : Taxheal@gmail.com

Leave a Reply

Your email address will not be published.