Question4: As per Notification No. 3/2018- Central Tax dated 23rd January, 2018, following are the amendment is CGST Rules, 2017:-

In rule 43, after sub-rule (2), for the Explanation, the following Explanation shall be substituted, namely:- 'Explanation:-For the purposes of rule 42 and this rule, it is hereby clarified that the aggregate value of exempt supplies shall exclude:-

The value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount, except in case of a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances.

Please explain, from which date it shall be applicable, whether retrospective or prospective.

Answer As per the principles of justice the explanation if any given should be applied prospectively if not mentioned that it is effective from the retrospective date. From time to time various judgment given by various courts also endorse the same view point

Now in GST Section 11 contain specific provision relating to adding of explanation to notification. The explanation added to exemption notification within one year from the date of issue of notification will be considered as retrospective but this is not your case In your case the explanation to rule is changed so we are of the opinion that it should apply prospective .(REPLY dt. 3/2/2018)