Amount paid as differential dealer margin is taxable @18%
Last updated: 22 November 2025
Court :
AAR, Kerala
Brief :
The AAR, Kerala in the case of M/s. P Achuthan Nair & Company [Advance Ruling No. KER/01/2024 dated January 10, 2024] where amount paid as differential dealer margin is in nature of a consideration received for agreeing an obligation to refrain from an act. Therefore, it squarely falls under clause (e) of SI No. 5 of Schedule and hence taxable to GST. Further, differential dealer margin is taxable under Heading No. 9997 at 18%.
Citation :
Advance Ruling No. KER/01/2024 dated January 10, 2024
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Bimal Jain
Published in GST
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