Registration under GST— the applicant is seeking an advance ruling in respect of the following questions:-

1. Whether Interest received in form of PPF would be considered for the purpose of calculating the threshold limit of Rs.20.00 Lakh for registration under GST Law?

2. Whether Interest received on Personal Loans and Advanced to family/friends would be considered for the purpose of calculating the threshold limit of Rs.20.00 Lakh for registration under GST Law?

3. Whether Interest received on Saving Bank Account would be considered for the purpose of calculating the threshold limit of Rs.20.00 Lakh for registration under GST Law?

held that—
the applicant is an individual with an annual turnover of more than Rs.20 Lakh. Since this income is interest-related, the turnover is exempt from GST. However, the Applicant also supplies services of "Renting of immovable property" along with activity of providing services by way of extending deposits, loans or advances where the consideration is represented by way of interest. His turnover from the rent income is Rs.9.84 Lakh and we know that this transaction ("Renting of immovable property") is chargeable to GST. However, his taxable turnover is only Rs.9.84 Lakh. Going by the definition of "aggregate turnover", the Applicant is required to consider the value of both the taxable supply i.e. "Renting of immovable property" and exempted supply of service provided by way of extending deposits, loans or advances for which they earned interest income, to arrive at "Aggregate Turnover" to determine the threshold limit for the purpose of obtaining registration under the GST Act.

We conclude that the Applicant is required to aggregate the value of exempted interest income earned by way of extending deposits in PPF & Bank Saving accounts and loans and advances given to his family/friends along with the value of the taxable supply i.e. "Renting of immovable property" for the purpose of calculating the threshold limit of Rs.20.00 Lakh for obtaining registration under GST law.—Shree Sawai Manoharlal Rathi, In Re… [2020] 24 TAXLOK.COM 035 (AAR-Gujarat)