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 ?
Posted by
Pravin Taparia
on
May 07, 2020
Filed Under
GST
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.
Posted by
CA Yogesh Kumar on
May 07, 2020
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.
Posted by
SACHIN AGARWAL on
May 23, 2020