25 August 2019
Hi Everyone please help me out from this dilemma One of my client is telecom distributor of airtel. He is issuing commission invoice to airtel company and paying GST on commission. Then whether he is required to issue outward invoice for each recharge value transferred by him to retailer. Airtel is issuing tax invoice for each value order placed by distributor and it is appearing in gst-2A of distributor. Please provide you expert view on given issue. As per current position, distributor is only issuing commission invoice to company charging gst on the commission give by airtel. and please tell me how to file his GST return on which basis on turnover which he sale or on commission basis Please tell me the process of GST returns
1. **Issuance of Invoices**: - Your client, as a telecom distributor of Airtel, issues commission invoices to Airtel and pays GST on the commission received. - Airtel issues tax invoices for each recharge value order placed by the distributor.
2. **Requirement for Outward Invoices**: - Typically, for recharge values transferred by the distributor to retailers, if Airtel is issuing tax invoices directly to the distributor and these transactions appear in GST-2A, the distributor may not need to issue separate outward invoices for each recharge value transfer. The key document here is the tax invoice issued by Airtel, which serves as the basis for input tax credit for the distributor.
3. **GST Return Filing**: - The GST return filing can be done on a turnover basis, which includes the commission earned from Airtel and any other taxable supplies made by the distributor. Alternatively, if the distributor is only issuing commission invoices and not separate invoices for recharge values, they might consider filing based on the commission earned.
4. **Process of GST Returns**: - Generally, GST returns are filed online through the GST portal (https://www.gst.gov.in/). Here’s a basic outline of the process: - **Prepare Returns**: Collect all invoices issued and received, ensure reconciliation of data, and compute GST liability. - **File Returns**: Log in to the GST portal, navigate to the 'Returns' section, select the appropriate return (GSTR-1 for outward supplies, GSTR-3B for summary return), and enter the required details. - **Payment of GST**: After filing, pay the GST liability online through net banking. - **Filing Acknowledgement**: Once filed, a return acknowledgement (GSTR-3B) is generated.
Given the specifics of your client's business as a telecom distributor, it's advisable to consult with a GST professional or accountant who can provide tailored advice based on the exact nature of transactions and applicable GST regulations. They can also assist in ensuring compliance with GST filing requirements and optimizing input tax credit claims.
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