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According to the most recent information, BSNL launched the BSNL RED Scheme, which allows a retired BSNL official to join the sales team and offer BSNL goods and services on a commission basis.

BSNL RED Commission Structure & Incentive for Sale of Products

With the use of the BSNL RED (Retired Employee Distributor) Scheme, a retired BSNL official can join the company’s sales team and make commission-based sales of its goods and services. The BSNL RED Scheme 2020 was introduced shortly after the BSNL VRS Scheme 2019 went into effect, under which 80,000 employees chose to retire voluntarily on February 29, 2020.

Numerous VRS participants have previously worked for BSNL telecom circles’ Sales & Marketing divisions. The RED (Retired Employee distributor) Scheme 2020 was created by BSNL to alleviate the scarcity of direct selling agents and salespeople and to use skilled BSNL VRS optees. The RED (Retired Employee Distributor) would approach clients at their doorsteps and through the organization of Mela / Camp at various sites in the Business Area to advertise and sell BSNL goods, such as SIM, Ctop-up, etc. When REDs sell BSNL goods and services, they will receive commissions or discounts.

Requirements for the BSNL RED (Retired Employee Distributor) Policy

  • The agreement’s first term will be for three years.
  • Only former BSNL workers who are ready to service clients/prospects on-site and by holding events like camps and melas are eligible to apply.
  • should possess a current PAN number.
  • Ideally, you should have a current Goods and Services Tax (GST) registration Certificate No. for the relevant state.
  • Self-statement that the applicant is not on the GST authorities’ “black list.”
  • The applicant declares that they are retired from BSNL.
  • A sufficient indemnification clause should be incorporated to ensure that no credit loss is sustained by BSNL as a result of RED defaulting throughout the term of the BSNL contract.
  • Security Deposit: Rs. 500 (five hundred only) refundable security deposit.

Verification of new clients’ credentials by RED

  • Verification of new customers’ credentials – New customers’ PIA (photo, identification, and address) must be verified in accordance with the different recommendations periodically released by the DoT and BSNL. REDs are in charge of the verifications they do.
  • Customers and subscribers must provide RED with the papers that BSNL may want from time to time.

Structure of commissions and discounts for RED (Retired Employee Distributor)

Sales Targets for RED

There must be a minimum monthly sales goal of 50 SIM/FRC and C-top-up/recharge transactions totaling Rs. 5000. Monthly updates on the RED’s sales goals must come from the BSNL Business Area. Every three months, objectives will be evaluated; if the RED does not meet the minimum monthly sales targets, the targets will not be continued.

Trade scheme benefit

The trade plan benefit for REDs should be in accordance with the standards applied to current retailers and any modifications there to.

Termination of Inactive RED

After giving notice and asking an explanation, the RED may be canceled if it is not discovered active for six months in a row. The RED registration may be revoked immediately in the event of any irregularity or breach of BSNL/GoI guidelines.


The BSNL Business Area Head may annually renew or migrate the agreement for a duration of two years.
RED for the current RED on the same terms. In this regard, BSNL’s decision shall be final and binding.

The process for buying and selling BSNL products

When buying and selling BSNL products, RED and BSNL must adhere to the following procedure:

1.The RED shall place an order for purchase of products from BSNL.
2.The payment for buying of any products of BSNL by RED shall be made in advance.
3.Upon dispatch of ordered products, BSNL shall raise an invoice on the RED, net of applicable discount to be provided to RED.
4.When selling its products to RED, BSNL will apply GST to the price at the transaction value. Invoices for the sale of BSNL products to RED would be raised by BSNL.
5.GST paid by RED to BSNL shall be available to RED as input tax credit which can be.
set off against the GST charged by RED to the retailer.
6.After the imposition of any applicable taxes, such as TDS, GST, or other fees, if applicable, secondary or subsequent incentives to RED, such as incentives on FRC/RC, any scheme-based incentives, etc., must be supplied online in the form of c-top-up value using a platform like Sanchar-soft, Pyro, or ERP.
7.RED will submit an invoice to BSNL for the further incentives offered by BSNL (see point 5 above), together with any relevant GST. Given that the incentive is given to RED in the form of a c-topup, BSNL will also issue an invoice to RED for the allocation of the c-topup amount. This invoice will also include any relevant GST.
8.It is the obligation of BSNL to discharge liabilities under the reverse charge mechanism in cases when RED is not registered under the GST Act. Furthermore, it is understood that in this scenario, RED will not add VAT to the invoice.
9.In accordance with Chapter XVIIB of the IT Act of 1961, BSNL is required to deduct tax at source from the secondary or later incentive it offers to the RED in exchange for the sale of BSNL products.
10.With regard to any secondary or subsequent incentives offered by BSNL, the GST paid by RED to BSNL and the GST paid by BSNL to RED would be available to RED and BSNL, respectively, as input tax credits that can be offset against the GST imposed by RED or BSNL.
11.When appropriate, the concerned cell of the BSNL Corporate Office will provide the necessary instructions. Methodology and applicable tax deduction/reconciliation on payments like discounts at the time of sale of BSNL Products, discounts on FRC/RC, any scheme-based incentive, etc. to RED may vary from time to time.
12.The invoices raised by RED and BSNL should comply with all the conditions as
prescribed under the tax invoice rules under Central Goods and Service Tax Rules,
13.It is the obligation of BSNL to discharge liabilities under the reverse charge mechanism in cases when RED is not registered under the GST Act. Furthermore, it is decided that RED will not include tax in invoices.
14.The appropriate cell of the BSNL Corporate Office must give any instructions or guidelines pertaining to tax deductions, reconciliation, or accounting that are applicable to circles or SSA.

Invoice for Incentives

  • If the RED receives further or later incentives, they must be paid for by
  • of RED to file the proper tax invoice in accordance with the GST Act’s guidelines. BSNL has the
  • entitled to compensation for credit loss in the event that BSNL is unable to recover ITC due to RED’s failure to comply with or raise the proper invoice. Additionally, you should send all bills.
  • quickly, but no later than 30 days from the invoice date, to BSNL.

Dear readers, kindly forward this information to your relatives and family who are retired BSNL employees. This would be profitable for them because BSNL provides a tempting commission structure.

What do you think?

Written by Shallu Srivastav

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