- Differential dealer margin provided by petroleum companies to retail dealers is taxable under GST
- The margin is provided to prevent dealers from closing down petrol pumps due to low sales volume
- The margin is considered a consideration for dealers agreeing to run the dealership despite low sales volume
- The margin falls under clause (e) of Schedule II of the CGST Act, 2017 and is taxable at 18% GST
- The supply of petrol/diesel to end customers is not taxable under GST in this case
Source: vilgst.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
