Retailer recharge

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.
Replies (2)

I saw the same Query is many forum and experts section. But, Nobody attend the queries...

 

In my view,

This is commision business.

The MRP is already fixed. The rate of Rs. 96 is including GST. (Bcoz, 96*18%= 17.28 + 96 = 113.28).

Your transaction get the profit/Charges only the transfring cost. That is 4-1=3. This is your commision.

So, You ll be pay GST on the commision. Just 3*18%=0.54....

 

 

OK sir

purchase JYADA hota hai sir chalega na sir
I m not tax liable to pay

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