WHETHER CHIT COMMISSION TREATED AS BUSINESS INCOME OR PROFESSIONAL INCOME? DOES IT ATTRACTS GST? IF SO WHAT IS THE BASIC EXEMPTION LIMIT?

Reply—Yes, GST is applicable on chit fund commission income. It will take part in your aggregate turnover and 18% GST is applicable on it. There is no basic exemption limit except the limit for registration which is Rs 20 lakh.

However services provided by a foreman of a chit fund in relation to chit is taxable @12% without ITC (Refer sr. no. 15 of notification no. 11/2017 (central tax rate) dated 28.06.2017.)