GST LIABILITY OF DISTRIBUTOR AND RETAILER ON RECHARGE/ E TOP SALE

[lalit kumar]

PLEASE ADVICE ON GST TAX LIABILITY ON ETOP OR RECHARGE SALE THROUGH A DISTRIBUTOR AND RETAILER.

REGARDS

LALIT

AI Summary

Clarification on GST Liability for Recharge Sales: Tax Charged Only on Value Addition, Applies if Turnover Exceeds 20 Lakhs. A query was raised regarding the GST liability on recharge or e-top sales through distributors and retailers. One response explained the GST process using an example: a manufacturer charges a wholesale dealer, who avails tax credit and adds value before selling to a retailer. The retailer also avails tax credit and adds value before selling to the consumer, ensuring tax is charged only on value addition, avoiding double taxation. Another response noted that GST liability applies if the turnover exceeds 20 lakhs. The discussion emphasized the tax application at each stage without double taxation.