Question 28:
A is a manufacturer doing business through Amazon US. It Manufactures
Products, Labels and Packs Products in Suitable Packing. It has to stock
Transfer and Pack Shipment containing Multiple Products to Amazon US. Amazon US
Sorts Products and keeps it Ready to ship it to its buyer in USA. In turn,
Amazon US charges a particular fee for storing its products in its warehouse
till they are finally delivered to actual buyer in US, for which amazon US
charges a fee from A.
Once Buyer order is received by Amazon US, US warehouse office of Amazon packs
Products and Courier it thru Amazon Transport Service to buyer in US, for which
Invoice is generated on behalf of A By Amazon US, with GST Number of A, So
Ultimate invoice received by Buyer is from A and not from Amazon US.
For each of successful order Amazon will Charge Fee over and above rent.
Hence GST is payable on value marked to Buyer by A whereas Amazon pays GST on
fees charged to A either as rent or commission on sale.
Whether such goods shipped to Amazon US by A will amount to Export ? How will
it be reflected in GST returns ? Whether IGST or CGST/SGST will be payable on
this transactions ? If IGST is payable then how can it be claimed as refund
because payment will be received only after actual sale which may be after 4 to
5 months of shipment to warehouse of Amazon US? How and when to book sale i.e.
at the time of shipment or at the time of actual sale ?
Kindly also clarify the position if all the above transactions are to be done
for Amazon India.
Answer
The goods being exported are required to be cleared on payment of IGST or
against LUT. Please note that the custom software will not allow generation of
shipping bill without sales invoice. After the goods are exported there will be
two situation, the goods may be cleared by Amazon US at the same price or with
some addition or discount, for which you will issue debit note or credit note as
the case may be. For the service charge /Rent charges Amazon will issue invoice
and no GST will charge on it in India because it is not Import of Service. For
renting service Place of Supply according to section 13(4) is Location of
immovable property i.e warehouse in US and for intermediary service Place of
supply according to section 13(8) is Location of supplier of service i.e
location of Amazon US.
It is immaterial whether the amazon mention GSTIN number of the supplier on
invoice issued to ultimate customer or not.
Whereas the situation is totally different when goods are transferred to Amazon
India for storing goods in their warehouse in India before sale. In this case
Goods shall be moved initially for reason other than supply as stock transfer on
Challan under Rule 55 and tax invoice by A shall be raised on when actual sale
is made from warehouse of Amazon India .(REPLY dt. 28-02-2018)