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Gst on mobile recharge coupons

Vinod Babu (24191 Points)

20 May 2018

sir, is GST applicable on mobile flexi and recharge coupons for mobile shop retailers. Is GST registration mandanatory for them?

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5 Replies

Jatin (Accountant) (3479 Points)
Replied 20 May 2018

18% GST, if turnover exceed Rs 200000 then registration required

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Vinod Babu (24191 Points)
Replied 20 May 2018

The mobile shop cannot afford to pay accounting fee to tax consultant and cannot keep a accountant to maintain/write sale bills, stock register, cash book, ledger book etc as they are get 1.75% to 2 % commission on recharge cards.
If they opt for composition they have to pay 1%. They get a small amount of commission between 1.75 to 2% so 50% income goes to government. So what is the ultimate solution for this type of business.

Jatin (Accountant) (3479 Points)
Replied 20 May 2018

Please read 20,00,000 instead of 2,00,000 (you can claim ITC on your purchases for reduce tax liability)

1 Like

Dheeraj Chitkara (6 Points)
Replied 24 March 2019

can you suggest how GST is to be accounted from recharge distributor to small retailer when retailer is un-registered

anil chauhan (article) (22 Points)
Replied 26 September 2019

As per guideline of Ministry of Finance,Department of Economic Affairs Currency & Coinage Division of GOI guidelines issued vide F.No-01/02/2015-Cy.I dated 29 Feb. 2016 on Promotion of Payments through Cards and Digital Means are worth noting. (refer Appeals to CIT (Appeals) only Electronically – Brevity is soul of Appeal). Under the guidelines, the digital transactions are defined as transactions in which the customer authorizes the transfer of money through electronic means, and the funds flow directly from one account to another. These accounts could be held in banks, or with entities/providers. These transfers could be done through means of cards (debit/credit), mobile wallets, mobile apps, net banking, Electronic Clearing Service (ECS), National Electronic Fund Transfer (NEFT), Immediate Payment Service (IMPS), pre-paid instruments or other similar means., The steps proposed to popularise the digital transactions include:

1. Promotion of Card/Digital Transactions in Government Payments and Collections;

2. Measures for Wider Adoption of Card/Digital Transactions;

3. Creating Acceptance Infrastructure;

4. Encouraging Mobile Banking/Payment Channels;