sir/madam
I am a online seller of men's shirt, i sell my products through various online marketplace(flipkart, amazon etc). Example are as follows :
A customer orders a shirt of mine on flipkart portal , from Delhi, flipkart generates a invoice of IGST= 5% and delivers the product by picking up from me ,That means i am liable to pay 5% IGST , ok fine , but at the time of payout from Flipkart they are paying back my payment charging their service charge(gst) of 18% , they are charging 18% gst on (commission, logistic, fixed fee,and collection charge) which is greater than my IGST=5% amount , now they are showing that 18% gst uner SGST and CGST , here my question arises then how will I get input tax credit
1) I am paying 18% gst to flipkart for their service , and they calculating it under SGST and CGST
2) The sold item is under IGST , 5%
then how to get the benefit of input tax credit
Hi
We have a lot of amount accumulated in our GST cash ledger against due to ITC on commission invoices, how can we claim this amount?
You can take the benefit of input tax credit on tax charged by portals such as Flipkart and Amazon.
Earlier they were charging service tax, for which input credit was not available to online traders.
However under GST benefit of input tax credit is seamless and you can utilise the CGST and SGST against the payment of IGST charged by you.
For example:
You sold goods worth 20 lakhs and your liability is 1 Lakh.
Flipkart charged 18% on commission amount of 5 lakhs. This comes to 90,000.
You need to pay to government only remaining 10,000 after utilising input credit of GST charged by Flipkart.
JOIN LARGEST DISCUSSION PLATFORM
Sign up to discuss taxation, accounting and finance topics with experts from all over India.
Join Discussion
