Does e-commerce export sales need GST payment remittance?

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Muhammed Abdulla Ansari (Querist)
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06 July 2024 Hello fellow CAs,

I've been selling on Amazon nationally. Now I'm planning to expand my sole-proprietorship business by selling internationally through Amazon. As of now, I've been paying GST remittances each month for all sales I make within our country. I want to learn what will be with GST remittances in new the scenario of selling internationally. Will the GST be exempted considering sales I make as e-commerce exports?

I also want to learn if there is some special details to be filled on GST portal in the new scenario of international sales while I file the monthly returns?

Thanks in advance.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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12 July 2024 Expanding your sole-proprietorship business to sell internationally through Amazon involves several considerations regarding GST (Goods and Services Tax) in India. Here’s a detailed overview of how GST applies to international sales and what you need to consider:

### GST on International Sales (E-commerce Exports)

1. **GST Exemption on E-commerce Exports**:
- E-commerce exports are considered as 'zero-rated supplies' under GST in India. This means that the supply of goods or services to a location outside India is taxed at a GST rate of 0%.
- As per GST rules, when you sell goods internationally through platforms like Amazon, the GST will not be charged on these sales because they are considered exports.

2. **Procedure for E-commerce Exports**:
- When you sell goods internationally through Amazon:
- The sales will be treated as exports from India.
- You should ensure that your sales invoices clearly mention that the supplies are intended for export.
- You do not need to charge GST on these exports.

3. **Refunds for Input Tax Credit (ITC)**:
- If you have paid GST on inputs (like goods purchased or services availed) used in making these exports, you can claim a refund of the accumulated ITC.
- The refund can be claimed through the GST portal by filing appropriate forms, such as GST RFD-01A.

### Special Details on GST Portal for International Sales

1. **Filing GST Returns**:
- While filing your monthly or quarterly GST returns (GSTR-1 for outward supplies and GSTR-3B for payment), you should:
- Exclude international sales from your taxable outward supplies in GSTR-1.
- Not report any GST collected on these sales.
- Ensure accurate reporting of exports in the relevant sections of GSTR-1 to reflect the zero-rated supplies correctly.

2. **Additional Compliance**:
- There are no special details specifically required for international sales on the GST portal other than correctly reflecting them as exports.
- Maintain documentation such as export invoices, shipping bills, and proof of receipt of payment in foreign currency for audit purposes.

### Steps to Follow:

- **Update Business Details**: Ensure your GST registration reflects that you engage in exports.
- **Invoice Compliance**: Prepare invoices correctly indicating 'Export' and adhere to international trade requirements.
- **Claim Refunds**: Regularly file GST returns and claim refunds for ITC accumulated on inputs used for exports.

### Conclusion:

Expanding your business internationally through platforms like Amazon involves navigating GST regulations for e-commerce exports. Ensure compliance with GST rules by treating international sales as zero-rated supplies and claiming refunds for ITC. Maintain accurate records and seek guidance from a tax professional if needed to ensure smooth compliance with GST laws in India.

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