Question ID : 40644

Applicability of GST

M/s ABC is a Petroleum Dealer. Dealer receives transport charges from HPCL/BPCL/ IOC. Where to be shown in GSTR -3B , the outward supplies which are subject to RCM ? Dealer also receives Variable dealer Margin from HPCL/BPCL/ IOC. Is GST applicable on Variable dealer margin ? if Yes, at what rate ?

Answer ID : 80510

GST is not applicable on the Petroleum products including desel. However Lubricants will attract GST. Hence Petrol pump need to register under GST if sell from other products is above 20 lakhs. Incentive to dealer, if in the nature of quantity discount for which there is an agreement before supply of Products is not considered part of Value. Hence it will not be covered Under GST and also on petroleum product it is not applicable. For transport charges, OMC is the supply receiver and dealer is the service provider. Hence it should be paid by OMCif not billed by dealer.

Answer ID : 80531

Person liable to pay the freight to GTA is recevier of GTA services and liable to discharge GST. Further, any incentive received will result in enhancement of transaction value of underlying supply. hence where the underlying transaction is a taxable transaction, tax is payable on incentives and if the underlying transaction is non-GST supply (petroleum products) then incentive will be added to exempt supply.

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