GST on e-commerce seller

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This discussion clarifies that selling goods from a rented US warehouse via Amazon, with no goods moving in or out of India, is not considered an export for GST purposes. Consequently, IGST is not payable, and RCM does not apply to payments made to US vendors. Amazon US invoices are sufficient, and the movement of money, rather than goods, does not attract GST. Such transactions fall outside the GST Act's ambit, meaning NIL GST returns should be filed.

Practicing CA

Practicing CA (Querist)

09 August 2021 A Seller residing in India, Buying and selling goods from a rented warehouse in US through Amazon. No Movement of goods from India. Paying for all purchases and receives all sales income in Indian bank Account.
- The sales will be treated as exports or IGST has to be paid?
- The payments made for purchases to US vendors from India Bank account, IGST payable under RCM?
- A separate tax invoice is needed to be prepared, or Amazon US's Invoice is sufficient?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 August 2021 The sales will not be treated as exports as there is no movement of goods from India. No IGST payable.
As import of goods not happen no IGST payable under RCM.
Amazon US invoice is sufficient.

Practicing CA

Practicing CA (Querist)

10 August 2021 Thanks sir for the reply, but what if money is routed through Indian Bank Account? The amount received in Indian Bank account from Sales through Amazon in US, and treatment of corresponding purchase payments (Purchases/Sales from US and for US) no movement of goods in / From India, but movement of money (USD) from/to Indian Bank account, it won't be covered in GST?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 August 2021 Movement of money is not considered for GST, it's only movement of goods and services attract GST.

Practicing CA

Practicing CA (Querist)

10 August 2021 Thanks a lot sir for the clarification. It means for GST we need to file NIL returns and under Income Tax we need to pay Tax subject to DTAA with US?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 August 2021 Yes, you are right.....

Practicing CA

Practicing CA (Querist)

10 August 2021 Thanks a lot sir, You really helped me to clear all the doubts and confusions.

Udaya Chandran

Udaya Chandran (Expert)

11 August 2021 As per Point No.7 of Schedule III of CGST Act, supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India is considered neither a supply of goods nor a supply of services. It is outside the ambit of GST Act.

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