Differential Dealer Margin provided by Petroleum Companies to Retail Dealers Deemed Taxable Supply of Service, 18% GST Applies: AAR

The AAR ruled that the differential dealer margin provided by petroleum companies to their retail dealers constitutes a taxable supply of service, attracting an 18% GST. This decision clarifies the tax treatment of additional payments made by petroleum companies to their dealers, ensuring that these payments are appropriately taxed under GST law. The ruling is important for the petroleum industry, as it establishes clear guidelines for the taxation of dealer margins, helping companies comply with GST requirements.