GST for dropshipping from aliexpress website to foreign customers

Hi Vaibbhav,

Hope you are doing well !

GST is mandatory since it is export of services/ goods.

You will have to charge GST on sale. You can claim the refund of of such taxes paid as export of goods are zero rated sales.

Alternatively, you can export under bond/letter of undertaking without payment of GST.

Thanks & Regards,

Payal Chhajed

Further please explain the followings:

1.Invoice procedure

2. Money receiving and making payments are in foreign exchange?

Thank & Regards,

Payal Chhajed

Hi Vaibhav

Drop shipping model works in 2 ways. How are you working? Please let me know how invoicing is done. Do you invoice the customer? Or is it directly through Aliexpress? Have you been charging GST on the invoices? Is whole of the customer base outside India?

Further, what is your annual turnover?

GST applicability shall depend on the above answers.

If it is a commission income for you then it will be subject to GST @18%. The commission would be essentially the profit element and no refund can be claimed back.

Thanks & Regards,

Payal Chhajed

Dear Sir,

Please share the following details for GST applicability:

1. What is your annual Turnover?

2. Invoice procedure-Billing method

3. Customers - All are from outside India?

4. Are you working as an agent for aliexpress chinese website?

Warm Regards,

Karishma Chhajer

there are 2 option

01. goods come to india

option 1 : custom is clear by you then you will be liable to pay IGST on import

take credit of IGST paid on import

collect IGST/CGST+SGST on sales

option 2 : sale by high ses sales and custom clearance done by the buyer : then your not liable to any GST

your have to shown sale and purchase both as exempt

02. goods not come to india : GST no applicable on such transaction

Hi,

I would need clarifications on few questions before i can respond to your question

What is the model of your operation?

Is invoicing being done by you or directly by Aliexpress ?

I am presuming this is not a commission model

What is your annual turnover?

Regards,

Nikhil.

Dear Sale,

If no sale is happening in India then no need to pay GST but in case of export if the turnover is more than 20 lacs then you need to pay GST and claim refund later on or you can obtain LUT and export without payment of GST.

THANKS

Hi vaibbhav,

GST applicablity in your case will depend upon the billing mechanism you follow for conducting your business.

Please let us know whether you receive invoice from your vendor and raise invoice to your customer.

Or, your vendor directly raise invoice on your customers?