Input Tax Credit for Importers, Goods and Services Tax - GST

[Indrajit Gambhira]

We are importing goods from foreign countries and selling them directly to consumers via Ecommerce platforms.Please let us know if we are elligible to take input credit of Customs Duty or IGST and adjust the same for output tax as IGST CGST and SGST. Also we are transfering the goods from our warehouse to their warehouse which is our additional place of business but different GSTIN.For this stock transfer is there any Tax involved within same state and which document is needed for the same?

Posts / Replies

[HimansuSekhar Sha]

You cannot take credit of customs duty. Only igst credit can be taken. When two units have different gstin no. Which means both are business verticals. When goods will be cleared from one to another cgst and sgst will be paid. These can be through utilisation of igst

[KASTURI SETHI]

I support the views of Sh.Himansu Sha, an expert.

[HimansuSekhar Sha]

Thank you sir

[Indrajit Gambhira]

Sir, Ecommerce marketplaces are generating our Tax Invoices on behalf of us for Retail Sale to consumers.So every marketplaces are maintaining their own Invoice Serial numbers. Shall we use their invoice serial numbers on our GST return ? If our Sales Turnover is below 2.5 lakhs per month do we have to upload all the Purchase and Sales Tax Invoices on GST portal?

[KASTURI SETHI]

E-Commerce Operators are not eligible for small scale threshold exemption. They are working for and on behalf of you. You must have executed agreement/contract with them. They are intermediaries. They will file their own return GSTR-8. You are to file GSTR-1, GSTR-2 and GSTR-3 (all monthly returns). You cannot use their serial nos. You are also not eligible for small scale exemption as you are engaged in inter-State sale. Your sale may be below ₹ 2.50 lakhs you are to upload all purchase and sale invoices. I am not aware of terms and conditions of your agreement with E-Commerce Operator.

Anyhow agreement cannot be executed in violation of the provisions of GST Acts.

[Indrajit Gambhira]

For Sales Return do we need to issue a Credit Note to the End Consumers?? If so, our outstanding payment or liability will increase every year in our books of accounts.How to adjust this liability?

[KASTURI SETHI]

Yes. Credit note has to be issued. Second part of query pertains to principles of accounting. I have no commerce background. Other experts may intervene.

[Indrajit Gambhira]

Sir, do we need to generate a waybill for Stock Transfer from our warehouse to another warehouse in same state?