The most recent GST update is that as per the new criteria, Interest on PPF and Savings Bank Deposit shall be accounted for deciding threshold for GST registration. Let us understand this update in detail.
Role of Interest on PPF, Savings Bank Deposit in GST registration
The value of some of the non-taxable incomes such as interest on PPF – Public Provident Fund, saving bank account, or the loans given to family/friends is to be calculated with the usual taxable supplies. The above rules are passed by the GST Authority for Advance Ruling, also known as AAR, in order to ascertain the threshold limits of obtaining GST registration.
Then after that, rules and regulations will be changed, and amendments will be done to the CGST Act 2017.
Reason for including Interest on PPF, Savings Bank Deposit
As per the GST laws, business and individuals are supposed to get GST registration, if in some case the turnover is ₹20 lakh or more.
Now, those individuals who are not running any kind of business had come forward to register an application in front of the Gujarat bench of AAR.
In that application, they are willing to know about whether the amount of interest received from the savings bank, loans, and PPF would be taken into consideration from calculating the threshold limit of ₹20 lacs under the GST law or not.
The Conclusion has come out that total income like Interest on PPF and Savings Bank Deposit will be included while ascertaining the threshold for GST registration. With this, the threshold calculation’s registration will henceforth be considered.
In case you need any kind of further guidance with regard to the GST registration, or GST return filing, or any other GST compliance, please feel free to contact our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates relating to your business.