Should value of loans & advances be included to determine GST registration limit?

In re: Anil Kumar Agrawal – Ruling dated May 4, 2020 – Authority for Advance Rulings (Karnataka)

Ruling: Income received from the following activities / transactions should be included, while calculating aggregate turnover, to determine the registration threshold:

  • remuneration as non-executive director of a company;
  • renting of commercial property;
  • renting of residential property (though it is exempt);
  • value of amounts extended as deposits / loans / advances (out of which interest is being received).

Comment(s): In paragraph 7.6 of the ruling, the Authority has recorded its finding that the actual amount of deposits / loans / advances is the actual value of service. It is erroneous to construe the amount of deposits / loans / advances extended as the value of service. Rather, interest earned therein is the actual value of supply for the activity of extending deposits / loans / advances.

Srinivasan V, Advocate

Recent Posts

Opportunity to prove bona fides must be given to recipient before ITC denial on account of supplier’s fault: Gauhati HC

Issue The Petitioner had questioned the validity of Section 16(2)(aa) of the CGST Act, 2017.…

2 months ago

Fee collected by universities not subject to GST: Karnataka HC

Decision / Observations [Order of the Hon'ble High Court of Karnataka, dated 24.11.2025, in WP.…

2 months ago

60 days time limit to pass GST refund order is mandatory: Calcutta HC

Decision / Observations [Order of the Hon'ble High Court of Calcutta, dated 30.07.2025, in M.A.T.…

6 months ago

CA certificate for receipt of net forex acceptable in lieu of FIRCs: Gujarat HC

Facts The Petitioner, engaged in export of services, had claimed refund of unutilized GST Input…

7 months ago

Why right to cross-examination is not unfettered: Delhi HC

[Order of the Hon'ble High Court of Delhi, dated 09.04.2025, in W.P. (C) No. 4576…

9 months ago

EWB detention proceedings conclude on penalty payment, no need to issue order: Orissa HC

Orissa HC judgment dt. 18.02.2025 in W.P.(C) No. 3055 of 2025 Goods were detained &…

11 months ago