QuestionsCategory: QuestionsWhether profit earned will be considered as consideration for supply of service
Jitendra Walkoli asked 5 months ago

Sir,
    My client  is  running a petrol pump owned by a  person in Goa whose is registered person under GST. Further, my client has entered into an an agreement with the owner of the petrol pump for running his petrol pump. As per the agreement for running the petrol pump my client will be entitled for all profits received from the operation of the petrol pump after incurring all expenses and  in return, my client will pay ownership fee of Rs.72000  monthly  to the owner of the petrol pump. . Furthermore, the owner is declaring the sales of petro products in  GSTR-3B returns, through his GSTIN and paying gst on lubricants etc, wheresas,  my client is showing the same  sales of petro products in his P&L A/c as sales.
My question are as follows
1.whether my client is providing any service  to the petrol pump owner., if yes, than which SAC will apply
2. whether my profit will be considered as consideration for the services supplied and whether i have to pay gst.