Service tax applicability on recharge coupons

Variant (Freelancer) (21 Points)

02 April 2017  
  1. Iam doing accounts of an entity distributing vodafone Recharge coupons & E Topup having a Turnover around 3.5 Cr in Kerala.
  2. Vodafone is directly billing to the entity and the same is sold to retailers.
  3. The entity is receiving claim from Vodafone for around 3 lakh, and no TDS Is being deducted for the same.
  4. Sale & Purchase are shown under Kerala VAT under 0% Goods(Recharge Coupons are classified as 0% goods under Kerala VAT).
  5. Rs 100/- MRP Coupon is received to distributor for 94.87/- and sold to retailer for 96.00/- (Gross profit of 1.177% on Sale)
  6. I Would like to know whether Service tax is applicable in the given case.