Exempt Supply

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..... Exempt Supply
Query (Issue) Started By: - Ethirajan Parthasarathy Dated:- 15-6-2020 Last Reply Date:- 16-6-2020 Goods and Services Tax - GST
Got 2 Replies
GST
The exempted supply for purpose of Rule 42 & 43 shall not include value of services by way of accepting deposits, extending loans or advances in so far as consideration is represented by way of interest or discount. The exclusi .....

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..... on is linked to consideration by way of interest or discount. In view of this, my view is Rental / Security deposit (received / given) and staff loan given which are interest free will form part of exempted turnover both for purpose of arriving at "Aggregate Turnover" as well as for purpose of Rule 42 & 43. Experts may give their view. Reply By SHARAD ANADA: The Reply: Examples given by you ar .....

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..... e all transactions in money. And transactions in money are not goods / services. So in my view it's not exempt supply. Reply By Prasanna Kumar: The Reply: It is a fact that the value of services by way of accepting deposits, extending loans or advances, in so far as consideration is represented by way of interest or discount, are exempted from the levy of GST. Yes, partially, the exclusio .....

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..... n is linked to consideration by way of interest or discount. But the Rental / Security deposit (received / given) and staff loan given which are interest free can not be equated with the accepting of deposits or extending loans since there are many differences in the nature and features of these transactions itself. Rent or rental income is the associated expense or income with rental deposit. Re .....

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..... nt or rental income is liable to levy of GST subject to certain conditions. As per definition under Section 2(47) Exempt Supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11, or under Section 6 if the IGST Act, and includes non-taxable supply. In my view rental deposit/security deposit cannot be treated as exemp .....

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..... t income.
Discussion Forum - Knowledge Sharing .....

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