Can anybody tell us that whether mobile or dth recharge service attract GST ? if yes at what rate ? as margin is very low as around 2% in retail and .50% as distributors, so if they opted for composition scheme also it charge 1% of sale so more than .50% tax will be from out of his pocket
so please anybody can tell me what is provision of it in GST
7 Replies
Ajay Prajapati
(512 Points)
Replied 24 June 2017
composition scheme not for services except restrau and dhabas
Onkar
(Self Employed)
(111 Points)
Replied 25 June 2017
Thanks sir, my question is assume I m a mobile/ dth recharge dealer who only purchase a balance from company and transfer it to retailer and i m getting a margin of .30%. i transfer that balance to retailer which is most of time urd as they r general store, pan shop, floor mill owner so many times they didn't continue for one year too so they r untraceable if scrutiny attract and secondly in such small margin rasing bill n allied cost for every retailer will override margin income.
second if I made retail of recharge business then also I m getting 2% margin and as said composition is didn't applied to my service as per rule i have to raise bill for recharge 200 and above and in that case customer is in N numbers they are walking customer too so while filling GST 1 which Custer name should I filled bcoz 99% will be untraceable i don't have any supportive measure to identify them
third if I m register dealer i have to file 37 return per year, so accounting cost would be more than earning
in such situation what should I do ?
second if I made retail of recharge business then also I m getting 2% margin and as said composition is didn't applied to my service as per rule i have to raise bill for recharge 200 and above and in that case customer is in N numbers they are walking customer too so while filling GST 1 which Custer name should I filled bcoz 99% will be untraceable i don't have any supportive measure to identify them
third if I m register dealer i have to file 37 return per year, so accounting cost would be more than earning
in such situation what should I do ?
Ajay Prajapati
(512 Points)
Replied 25 June 2017
if ur agrigate turnover is with in 20 lakh . you dont need to register in GST and dont need to pay tax ...
Onkar
(Self Employed)
(111 Points)
Replied 25 June 2017
In previous service tax or Vat regime too service tax is applicable to recharge but that service tax is collected and deposited on behalf of retailer/ distributor by telecom co because that included in mrp of recharge. so in GST regime there is no such provision or what
Ajay Prajapati
Ajay Prajapati
Rohit Attri
(2 Points)
Replied 19 August 2017
This tax is on purchase Total ammount of mobile recharge or on profit of mobile recharge which is near 2%.
coz spose my purchase of recharge as a retailer for one month is Rs. 1,70,000
and for one year it is Rs, 20,40,000
I am from kullu himachal Pradesh, here is limit is Rs. 10,00,000
Please reply
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