I'll be to signing up with Amazon.com(USA) "Affiliate Program" and All the buyers will also from the USA. To file GST return i need invoice, but how do i raise invoice, i cannot send invoice to Amazon.com. because Amazon does not expect us to provide an invoice in order to receive commission. We get paid automatically when we reach the minimum payment threshold. And I cannot charge them GST because Amazon.com is not subject to indian taxation laws. They'll only pay me the commission i made.Then how should i deal with the GST?
Hi
We need to have a detailed understanding of the subject in order to advise correctly.
In case it is a pure commission earning model, GST shall have to be charged. (CGST +SGST). Since you are receiving a pre decided consideration, reverse calculation shall have to be done and gst shall be calculated accordingly.
According to me, you will be covered under export services and GST will be zero rated. You can show the total amount received as invoice amount and do not show invoice wise amount seperately.
Yes it'll be a pure commission earnings, And So i need to pay GST. But the one more problem is... to file GST return.. i need invoice but Amazon.com does not expect us to provide an invoice in order to receive commission.
- It is an export of services to the Amazon USA. You will be required to register for GST once the turnover crosses limit of Rs.20 lacs. For GSTR-1 filing under the export category, create invoices internally for each payment. Apply LUT for export without payment of taxes. Claim eligible ITC.
For detailed discussion, you may have a phone consultation.
Okay...then it'll not considered as intermediary service..because the seller(Amazon.com US) and Buyers both are out of INDIA. Correct me if i am wrong.
No, it cannot be considered as export.
We need to have a better understanding on agreement and invoicing to decide on taxability as intermediary or otherwise.
Please take a phone consultation for detailed discussion.
- I don't think it would fall into the category of intermediary. For detailed discussion, please take phone consultation.
There are cases where a supplier is classified as intermediary and GST is charged even when buyer and seller are outside India.
- Your case is similar to the Google adsense payments received by a youtuber in India. The advertiser is placing advertisement on youtube channel for which payment is made to google adsense by the advertiser for purchase of advertisement space. Youtuber is getting payment from the googleadsense on the basis of clicks or any other methodology.
Intermediary means a person who arranges or facilitates the SUPPLY of goods or services between two or more persons.
You are going to earn commission from amazon.com and therefore it'll be liable to GST.
However have your earning exceeded Rs. 20 lakh during the year because otherwise you are not liable to register under GST.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
As far as invoicing is concerned you'll have to show to just issue an invoice in name of Amazon. That is how things are done in India as well when Amazon india gives commission to the affiliate marketer.
There is no need to send them an invoice or anything and the 18% would be inclusive and your cost.
You are the service provider and Amazon US is service receiver and you'll be providing intermediary service and in that case since provider is in India same shall be taxable in India.
It has nothing to do from where the buyer of product is.
It will not ne intermediary service.
Government has exempted such intermediary services where both location of supplier and recipient of goods is outside India then in such a case intermediary service provider is not required to pay GST on the same.
Hello,
Your services would be considered as Export Services. By applying for LUT you can supply your services without payment of IGST.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
For invoice wise declaration in the GST returns, you would be required to create invoices against each payment for internal purpose.
Dear Sir,
Hope you are doing well !!
As per my understanding, your services fall under the category of intermediary services.
You need to issue an invoice to the company. If they are paying you a fixed amount and not paying GST in addition, you simply need to do reverse calculation of GST according to the amount so received.
-GST registration is mandatory for intermediary services without any threshold limit.
-Intermediary generally charge commission against the services provided by them.
-The commission income so earned is subjected to GST@18% and all the provisions of GST law is applicable accordingly.
It is advisable to take a phone consultation for detailed discussion.
Hi
If your earnings exceed 20 lacs then you have to pay GST. Because you are earning commission.
Hi
You need to raise invoice. And if they pay a fixed amount then reverse calculation of GST is to be done
For better understanding you can take a phone consultation
For better understanding you can take a phone consultation