9911796707
TMI Blog2020 (5) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... e on partners fixed capital credited to partner's capital account d) Interest income on partners variable capital credited to partner's capital account e) Interest received on loan given, f) Interest received on advance given g) Interest accumulated along with deposit/ fixed deposit h) Interest income received on deposit/ fixed deposit i) Interest received on Debentures j) Interest accumulated on debentures k) Interest on Post office deposits l) Interest income on National Savings certificate (NSCs) m) Interest income credited on PF account n) Accumulated Interest (along with principal) received on closure of PF account. o) Interest income on PPF p) Interest income on National Pension Scheme (NPS) q) Receipt of maturity proceeds of life insurance policies r) Dividend on shares s) Rent on Commercial Property t) Residential Rent u) Capital gain /loss on sale of shares 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: i. Out of the given sources of Income/ Revenue which all revenue income shall be considered for Aggregate Turnover for registration? ii. Out of given nature of income / revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal hearing. We have also considered the issues involved, on which advance ruling is sought by the applicant, and relevant facts. 7.2 At the outset, we would like to make it clear that the provisions of both the CGST Act, 2017 and the KGST Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the corresponding similar provisions under the KGST Act. 7.3 The applicant, an unregistered person, is in receipt of various types of income and intend to know whether the income so received in each type is includable in the Aggregate Turnover, for the purpose of registration, under the provisions of GST Act. 7.4 In this regard, we invite to reference to the definition of "Aggregate Turnover", in terms of Section 2(6) of the CGST Act 2017, which reads as under: "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 Accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d supra. Therefore in the instant case extending the deposits/loans/advances by the applicant is nothing but exempted service and the actual amounts of deposits/loans/advances become the value of the service. Thus these amounts are to be included in the aggregate turnover for registration, under the provisions of GST Act. 7.7 Partner's salary, received as partner, from applicant's partnership firm : The applicant is in receipt of certain amount termed as partner's salary from the firm where the applicant is also a partner. The applicant has not furnished any documents relevant to the issue, such as copy of agreement, appointment order etc., so as to decide whether the applicant is an employee of the partnership firm or not. In case. if the applicant is a working partner and is getting salary then the said salary is neither supply of goods nor supply of service in terms of clause 1 of Schedule III of CGST Act 2017. Further, in case if the applicant is in receipt of the amount towards his share of profit from the said partnership firm, then also the said income is not under the purview of GST as the share of profit is nothing but application of money and hence the said salary is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e charge mechanism. 7.9 Rental income on Commercial Property : The transaction of rental/lease of commercial property amounts to supply; applicant receives periodical income towards the impugned supply of service 86 the same is in the course or furtherance of business and hence the said transaction amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017. Thus it is a taxable supply of service having SAC 997212 and therefore the value of such supply is to be included in the aggregate turnover, for registration. 7.10 Rental income on Residential Property: The transaction of rental/lease of residential property amounts to supply; applicant receives periodical income towards the impugned supply of service 8; the same is in the course or furtherance of business and hence the said transaction amounts to supply in terms of Section 7(1)(a) of the CGST Act 2017. However "Services by way of renting of residential dwelling for use as residence, classified under SAC 997211" are exempted from the tax (GST) in terms of entry number 12 of the Notification No. 12/2017 dated 28.06.2017. Thus the impugned supply of service of renting of residential property becomes an exempted supply. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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