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Input refund for Online Seller

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rinku

PROP

23 Points Posted on 16 August 2020

Many E Commerce Sellers have already accumulated huge Input credits due to 18% GST on commission charged by ecommerce operators. Can they claim refund of ITC as it includes ITC of Goods, Commission & Others services and Fixed Assets purchased by them (They are buying/selling goods in 5% category).
Kindly suggest refund procedure as per the latest guideline by GST concil in June-July notification .

Replies (2)

Quick Summary

E-commerce sellers with substantial GST input tax credits, particularly from the 18% GST on operator commissions, are seeking clarity on refund procedures. While generally refunds are limited to zero-rated or inverted duty structures, recent June/July 2020 guidelines may offer new avenues for online sellers to claim these accumulated credits. Further information on specific notifications is required.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 16 August 2020

Registered person is eligible to claim Refund of ITC accumulated only in two cases
1. Zero rated Supplies
2. Inverted duty structure case.

In other cases, Refund of ITC Credit is not allowed.

rinku

PROP

23 Points Posted on 16 August 2020

Thank you very much sir, But recently in June'20 or July'20 Govt has issue new guideline for the refund of ITC to online seller as they have to pay 18% services tax. But I am not able to get copy of notification / order of this recent amendment