QUESTION

A Chartered Accountant (CA) is working as Partner in a Audit Firm and receiving some remuneration from the firm. Further, the CA is giving services to some other clients as Insolvency and Bankruptcy consultant, in individual capacity. The remuneration received from the Audit Firm is being exhibited as `Business Income` in his Financials and not as `Salary`. The Audit Firm is also not recovering the TDS, under income tax provisions, from the CA. A. Now please let me know whether this remuneration received from Audit Firm gets included in the term `Aggregate Turnover` and necessities Registration under GST, in view of his other income as Insolvency and Banking Consultant ? B. What would be the treatment if it is considered as salary received from the Audit Firm ?

ANSWER
Facts of the case:
 Treatment of remuneration received by CA from audit firm in GST.

Law Applicable:
 SECTION 22 OF CGST ACT
(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees

SCHEDULE III OF CGST ACT

1.Services by an employee to the employer in the course of or in relation to his employment

Conclusion:
 A. In case the remuneration from Audit Firm is received in the form of Business income then it will be included in the Aggregate Turnover along with Other income of Insolvency and Banking Consultant.

As per Section 22 of CGST Act if your aggregate turnover exceeds threshold limit i.e. 20 lakhs then you are required to take registration under GST.

B.However if the remuneration is received as Salary then as per clause 1 of schedule III of CGST Act it is not considered as supply and is outside the ambit of GST and thus will not get included in the aggregate turnover.