GST Refund incase of Commission paid

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122 Points Joined July 2019

A firm deals in readymade garments having 5% gst. Selling on amazon and amazon generates tax invoice of commission with 28% Gst that accumulates a lot in ITC.

Can we apply for refund?

If yes, in which head?

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On 29 January 2025 at 09:42 Report
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Master in Accounts & high court Advocate
9123 Points Joined December 2011

Yes, you can apply for a refund of the accumulated Input Tax Credit (ITC).

Since you're dealing with readymade garments with 5% GST and Amazon's commission invoice has 28% GST, you can claim a refund under the following conditions:

Conditions for Refund 1. *Accumulated ITC*: You have accumulated ITC due to the difference in GST rates between your output supplies (5% GST) and input services (28% GST on Amazon's commission).

2. *No direct link*: The input services (Amazon's commission) are not directly linked to your output supplies (readymade garments).

3. *Refund eligibility*: You're eligible for a refund under Section 54(3) of the CGST Act, 2017.

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On 29 January 2025 at 15:04


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