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?
Menu
GST Refund incase of Commission paid
Replies (1)
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.
Recent Topics :
- PCIT-1 Thane Email address
- CA Fees deduction for non audit case allowed?
- 5th Letter PAN Mismatch with Surname issues still
- Criteria to hire an article
- Guidence requested for a Finance Professional with
- Expert Opinion Required – Form 140 Gross Amo
- WRONG TAX DEMAND - formal responses , rectificatio
- Foreign remittance
- Affordable Residential Flats in Gurgaon
- Manufacturing
Related Topics :
CAclubindia
