Question40: Is Remuneration from the partnership firm to the partner is an exempt supply under the GST Act.Whether it will be included in aggregate turnover for registering under GST.

Answer If the salary is paid with in the prescribed limit under section 40(b) of income tax Act then it should not be considered as supply by virtue of clause 1 of schedule I of GST act. The remaining portion if paid over and above the prescribe limit will be considered as distribution of profit therefore it should not be subjected to GST.

Thus not included in aggregate turnover. (Reply dt. 12/4/2018)