Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
Law Related Issues
22. Eligibility for Composition Scheme to dealers when they are receiving Interest Income.
Section 10(2)(a) of CGST Act, 2017 provides that the registered person shall be eligible to
opt under sub-section (1), if he is not engaged in the supply of services other than supplies
referred to in clause (b) of paragraph 6 of Schedule II.
Issue
Interest received on any amount appears to be a service and has been provided exemption
under the exemption notification. Therefore, there is a doubt that in case dealer receives
interest then he may not be eligible for composition scheme.
Suggestion
It is suggested that it be suitably clarified that in case a dealer receives interest the he
would be eligible for opting Composition Scheme. Similar clarity is also required for
inclusion/exclusion of non-operational income e.g. interest/dividend while calculating
aggregate turnover for computing limit of Rs. 20 L for registration purpose under Section 22 & Section 24 of CGST Act,2017
Read Suggestions on GST Implementation Issues 28.09.2017 by ICAI Indirect Tax Committee
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