Question ID : 22196

Calculation of GST on e-recharge by the Dealer or Retailers of Telecom Company

Please analyse the transaction between the e-recharge Dealer (“the Dealer”) of Telecom companies such as Airtel or Reliance Jio (“the Company”) and the Retailers. The Dealer purchases talk time of Rs. 1,09,349- against the payment of Rs. 1,00,000- to the Company. The Company is raising the Invoice of Rs. Rs. 99,507.58 only instead of Rs. 1,00,000-. Commissions are also paid by the Company to the Dealer and the Retailers. Now the Dealer sold the talk time of Rs. 1,06,500 on payment of Rs. 1,00,000- to his Retailers. Now, the Query is that how the Dealers would discharge the GST Liability on sale of e-recharge.