Documents and GST for a Mobile Recharge Business: Complete Guide

Starting a recharge business is simple, but you still need the right documents. This guide lists what is usually asked and explains the GST basics in plain words. For your exact tax situation, always confirm with a chartered accountant.

KYC documents for retailers and distributors

• PAN card
• Aadhaar card
• A recent photograph
• Shop or address proof (for example, a utility bill or rent agreement)
• Bank account details for refunds and settlements
• Mobile number and email address

KYC protects you and the platform: it keeps wallets safe and helps resolve disputes quickly.

Extra documents for a business or software owner

• GST certificate, if registered
• Business registration (proprietorship, partnership, LLP or company documents)
• Business PAN
• Current account in the business name
• Your domain name and brand logo, if you buy white label software

Do you need GST registration?

GST registration becomes compulsory when your yearly turnover from services crosses the threshold set by law (₹20 lakh for most states and ₹10 lakh for some special category states at the time of writing). Some businesses register earlier because B2B customers or payment partners ask for a GSTIN.

In recharge, what counts as your turnover and how commission is taxed depends on how your business is set up. This is exactly where a CA saves you from mistakes.

TDS on commission

Commission income can attract TDS under the Income Tax Act. Rates and limits change from time to time, so check the current rule with your CA and keep the TDS certificates you receive for your tax return.

Records you should keep

Good recharge software gives you these reports from the admin panel, so month-end accounting takes minutes.

Documents checklist by business type

Common KYC mistakes that delay activation

• Blurred photos of documents
• Name spelled differently on PAN and Aadhaar
• Address proof older than allowed or in another name
• Bank account name not matching the KYC name

Sending clear, matching documents the first time usually gets your ID activated much faster.

Keeping your business compliant

File returns on time, keep invoices for software and other expenses, and download monthly commission reports. If you employ staff or open more counters, review your registrations with a CA once a year.

Conclusion

Keep your KYC ready, decide early whether you need GST, and maintain clean records from day one. Ready to begin? Register as a retailer, become a distributor, or see the software demo.