Mr. Vikas, lives in Jaipur have submitted that he is an individual not engaged in any business. His receipts are only from savings, personal loans and advances and deposits, which are reflected in the Income Tax Returns.

Notification No. 12/2017-Central Tax (Rate) and Notification No. 9/2017-Integrated Tax (Rate), both dated 28-6-2017, as amended, provides a list of services exempted from payment of Central Tax on Intra-State supply and Integrated Tax on Inter-State supply. Entry 27(a) of the Notification No. 12/2017 and Entry 28(a) of the Notification No. 9/2017 relates to services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest. The services regarding interest income are covered under the above Notification. Therefore, such services are exempted from payment of GST and the individual is not required to discharge GST on the activity of providing services by way of extending deposits, loans or advances where the consideration is represented by way of interest. Therefore, in given case GST is not leviable on Interest Income earned by the Mr. Vikas. In the given case Mr. Vikas is an individual with an annual turnover of more than ₹ 20 Lakh. Since this income is interest-related, the Interest is exempt from GST. However, the Mr. Vikas 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 ₹ 9.93 Lakh and this transaction ('Renting of immovable property') is chargeable to GST. However, his taxable turnover is only ₹ 9.93 Lakh. Going by the definition of 'aggregate turnover' under section 2(6) of the CGST Act, 2017, Mr. Vikas 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. In view of the above, we conclude that the Mr. Vikas 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 ₹ 20.00 Lakh for obtaining registration under GST law. Note: Aggregate Turnover threshold limit for registration is considered to be ₹ 20 lakhs during a financial year as per section 22 of the CGST Act given that the supplier is engaged exclusively in supply of services and; he is in the state of Rajasthan. In view of above, as the aggregate value of turnover of Mr. Vikas is ₹ 20,21,000 which is more than the threshold limit of ₹ 20.00 Lakh for obtaining registration under GST law, he is required to get himself registered under GST Law.