Gst on mobile recharge services

Dear Team,

I am doing a mobile Recharge business.

Before GST the company is paid 15% service Tax on MRP Price

But After GST the company is paying 18% GST on the Base price. not on MRP Price. They asked to pay balance amount from Distributor and Retailer.

I am Retailer how to pay this GST. I am having GST Number. But the same is not deduct from the Consumer.

Example if one mobile operator MRP Rate is Rs.100/- then his base price is Rs.96/- and Rs,1/- to the distributor and Rs.3/- to the retailer. Now mobile company paying Rs.96*18% of GST. But for distributor and Retailer has no clue how to deduct and get tax credit.

Another thing for Goods the Retailer will collect the entire tax from the End Consumer and pay the tax.

But in recharge the Company is collecting the 96%(Base price amount from the retailer at the time of Recharge).

Can you explain the logic and what amount deduct and pay from the retailer point of view.

Regards

Sham

Sham kya aap ye bata sakte h ki aap jo 100 ka balance padwate hai to distributor aapko kaise billing karta h... ya aap kitna pay karte ho 97 ya 97+18% GST? And according to me the process will be like - 1. Company to Distributor - Company makes a Tax invoice of 96 + 18% gst = 96 + 17.28=113.28. Here it means that Distributor should pay to Company 113.28 inclusive Gst. 2. Now the Company that collected Gst Rs. 17.28 from Distributor have to pay to the government after adjusting his ITC if any. 3. Distributor to Retailer - When Distributor gives 100 Rs. Balance to retailer he takes 97 because of 3% profit to retailer. At this point Distributor makes Tax invoice to retailer on 97 + 18%Gst = 97 + 17.46Gst = 114.46. 4. Now the Distributor collected 17.46 as GST from retailer on value of Rs. 97 which is his outward supply. But as he already paid Gst of Rs.17.28; he can deduct this because it become his ITC. So, Gst to be paid by Distributor = 17.46 - 17.28(ITC) = 0.18 Paise. 5.Retailer to Consumer/Customer - Now at this pont it is little bit different. The Retailer gives or recharge the Customer no. with Rs. 100 and in turn Customer gives Rs. 100. And if we treat like according to above steps where the GST is charged on 96 & 97 for Distributor & Retailer. It will be wrong. Because we cannot charge Gst on Rs. 100 as Rs. 18 seperately from Customer. 5.a. Here the balance we transfer to Customer is inclusive of Gst. As you can check the recharge successfull message in Customer mobile. The message shows 81.75 as Talktime, 3 Rs. as Access Fee, 15.25 as GST; which total amounted to Rs.100. b. So, here The Retailer issue a Tax invoice as 81.75 + 3 + 18% Gst = 84.75 + 15.25(GST)= 100 6. Now as you see the GST collected by Retailer from Customer is Rs.15.25 . But he had paid to Distributor 17.46 as GST. Which will become his ITC.So here Retailer will get a Refund of Rs. 2.21 (17.46 - 15.25). Conclusion - Since Gst is consumer base tax system; The Retailer, Distributor and The Company will not pay any taxes out of his pocket or account the burden to imposed on final Consumer/Customer. Sham I think this is the treatment. Kindly, consult it with some professional; So I also be sured 100%.