• Google Ads Traffic For Generating Sales On ClickBank

Hi,

I've been advertising on Google ads since 5+ years and all these years I had no GST number so 18% of my ad spend was lost in tax. 
Here the things I advertised were ClickBank products - which pays me in USD and the products are neither held nor sold in India. I think this comes under zero rated nature of supplies. 

Here I am not charging GST for any sales but paying for advertising.

Now I've started using GST number but I have one question is the GST amount of 18% is refundable?
If it is then how to do that? 
Or are there are any other ways to save that 18% since it's a complete loss.
Asked 6 months ago in GST

Yes if your products or final service is zero rated than you can claim refund of all the amount you have spend for GST online on periodical basis and you can claim it from the date of GST Registration

 

Vishrut Rajesh Shah
CA, Ahmedabad
928 Answers
39 Consultations

5.0 on 5.0

In case of zero-rated supply without payment of tax, unutilised ITC is refundable. We can assist you in the process

 

For detailed discussion, you may opt for phone consultation 

Vivek Kumar Arora
CA, Delhi
4848 Answers
1044 Consultations

5.0 on 5.0

Are you providing advertisement service? or are you selling those products in your own name?

Who is your customer?

First need to check whether your service would fall under export or not and then we can decide whether you will get a refund or not.

If it falls under export you will get refund.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4274 Answers
97 Consultations

5.0 on 5.0

- Do you have copies of FIRC for inward remittances? 

Vivek Kumar Arora
CA, Delhi
4848 Answers
1044 Consultations

5.0 on 5.0

  1. Understanding Your Business Model:

    • You're engaged in advertising products for ClickBank, which involves marketing products manufactured and sold in the USA to US residents. You earn commissions on these sales.
    • The payments for these commissions are received in your Indian bank account, converted from USD to INR. Importantly, you do not collect GST on these sales.

  2. GST on Advertising Expenses:

    • You have been paying 18% GST on your advertising expenses through platforms like Google Ads and Facebook. This has been a significant cost, as you haven't been able to utilize the Input Tax Credit (ITC) accrued from these expenses.

  3. Your GST Status and LUT:

    • Now that you have a GST number and considering you have a Letter of Undertaking (LUT), it appears your services might be classified as 'export of services', which are zero-rated under GST.

  4. Claiming ITC Refund:

    • As your services likely qualify as zero-rated exports, you should be eligible to claim a refund of the ITC on your advertising expenses.
    • The process involves filing the relevant GST returns and applying for the ITC refund online. It's essential to maintain proper documentation, including copies of the Foreign Inward Remittance Certificate (FIRC), to substantiate the inward remittance of foreign currency.

We can assist you in this matter.  We can guide you through the process of claiming your ITC refund, ensuring proper compliance with GST norms, and liaising with service providers to prevent GST charges at source.

Hope you find the information helpful. You are free to contact me for further discussion.If you could spare two minutes of your time to write a review, It would be really grateful and very happy to read it.

 

Thank you.

Shubham Goyal

Shubham Goyal
CA, Delhi
225 Answers
4 Consultations

5.0 on 5.0

I believe that goods are sold in your name and hence the business is not of commission agent but of trader. Further, since it is a sale of goods online then no GST is applicable on same and it won't be considered as export under GST hence you cannot get the credit of same.

 

Most people who sell in USA use google or Facebook manager of USA and hence no GST is charged.

Naman Maloo
CA, Jaipur
4274 Answers
97 Consultations

5.0 on 5.0

Hi

 

The advertising services would be export of services and since it is zero rated, the ITC on inputs would be lying unclaimed. To claim the same, refund application needs to be made for which appropriate invoice and documentation needs to be submitted. We have successfully obtained refund of many affiliate marketers and advertisers. 

 

You can contact for detailed consultation.

Prerna Peshori
CA, Pune
194 Answers
11 Consultations

5.0 on 5.0

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