Answer

1. F

   Facts

   For deciding composition eligibility, the value of exempt services by way of deposits, loans or advances where interest is the consideration is not counted, as per the explanation to Sec 10. Interest is exempt, so it attracts no composition tax for traders.

2. P

   Provisions and law

   • Sec 10(1), CGST Act 2017A registered person with aggregate turnover up to the notified limit (₹1.5 crore, lower in special category States) may opt to pay tax at a fixed rate on turnover.
   • Sec 23(1), CGST Act 2017Persons dealing only in exempt or non-taxable supplies, and agriculturists selling their own produce, are not liable to register.
3. A

   Analysis

   FD interest of ₹1 lakh does not push you towards the ₹1.5 crore limit. It is also not a taxable supply, so traders do not pay 1 percent on it. Keep it separate from business turnover in your records. Check how your category's rate is computed.

4. C

   Conclusion

   1. 1Record FD interest separately.
   2. 2Exclude it when testing the ₹1.5 crore limit.
   3. 3Do not include it in CMP-08 taxable turnover for trading.
   4. 4Keep bank statements.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.