Money lending business having given to borrowers more than 35lakhs and rotated the amount and turnover is more than 50 lakhs excluding interest. Whether liable to register under Gst act.Rotation of money is a turnover under Gst act.

Reply— As per Section 22 of CGST Act, every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees.

Under section 2(6) “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 Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

As per Notification no. 12/ 2017 (central tax rate) dated 28.06.2017, services by way of extending deposits, loan or advances in so far as the consideration  is represented by way of Interest or discount is exempt under GST. Since it is an exempt supply, it will take part in calculation of aggregate turnover. Interest received on giving personal loan is to be considered for the purpose of calculating the threshold limit of Rs.20 Lakh for Registration under GST. (Refer advance ruling pronounced by AAR Gujarat in matter of Sawai Manoharlal Rathi dated 19.05.2020)

As per section 23 of CGST Act, any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act shall not be liable to registration.

Therefore if your client is engaged exclusively in providing exempted service, registration is not required. Otherwise registration is to be taken in terms of section 22 of CGST Act.

Also note that as per Order no. 01/2017 (removal of difficulties) dated 13.10.2017, it is clarified that in computing aggregate turnover in order to determine eligibility for composition scheme taxpayer, value of supply of any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of Interest or discount, shall not be taken into account.