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Merchant trading through Ebay marketplace., Goods and Services Tax - GST

Issue Id: - 112879
Dated: 27-9-2017
By:- Bipul Goyal
Merchant trading through Ebay marketplace.

  • Contents

Sir , we are selling ritual items on ebay internationally. We do not import or export directly. After receiving order we are directly asking our Nepal supplier to send item to client at USA. And money comes to my account in India through PayPal.

Order comes in small scale. So Nepal supplier makes a small parcel and sends to my client through post office.

So what should I do after GST ?

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Posts / Replies

Showing Replies 1 to 15 of 17 Records

1 Dated: 28-9-2017
By:- KASTURI SETHI

In this situation three stages are involved.

1. You place the purchase order on Nepal supplier. This is export of service from taxable territory.

2. Nepal dealer supplies the goods to a person in USA. This activity is from non-taxable territory to non-taxable territory. Hence no question of GST.

3. Now you receive the amount of profit or commission in the form of foreign exchange. This amount has been received by you on account of export of service (though you have not complied with export procedure) as well as activities happened in non-taxable territories. Services have been enjoyed in a foreign country because of your export of service of placing order on Nepal dealer.

It cannot be denied or challenged.So your profit or commission, whatever you may call, is the result of export of service.

Hence not taxable. Placing the purchase order on a person located outside India is export of service and nobody can challenge it. As a result, foreign currency has been received. Both conditions fulfilled for export purpose or criteria.


2 Dated: 28-9-2017
By:- Bipul Goyal

Namaste sir

thanks for your help. How will I show it in GST return


3 Dated: 28-9-2017
By:- KASTURI SETHI

That is possible after looking into terms and conditions of contract, if any.


4 Dated: 28-9-2017
By:- Bipul Goyal

Thanks for your message sir.
There is no agreement between me and supplier in Nepal. Actually there is 2 or 3 supplier from whom I purchase.

It’s a small scale shipment.
I get orders in Ebay from Usa. Each order is in between 10 usd to 40 usd.
After that I ask my Nepal supplier to pack that item and send it through post office ( registered mail from Nepal )

All the payments I receive in India through PayPal.
PayPal convert that money into Indian currency and transfer it to my bank account.


5 Dated: 29-9-2017
By:- Chhatra Jain

I endorse the views of Shri Kasturiji who explained the matter in a lucid manner.


6 Dated: 29-9-2017
By:- KASTURI SETHI

Thank you Jain Sahib.


7 Dated: 30-9-2017
By:- KASTURI SETHI

Dear Querist, You can show this transaction value against the column "Exempt. Etc." in GDTR returns.


8 Dated: 2-10-2017
By:- Bipul Goyal

Namaste sir.

According to new rule for small exporters where letter of undertaking needed to be furnished instead of bond how to show it in merchant trading while filling GST return ?


9 Dated: 2-10-2017
By:- KASTURI SETHI

Filing letter of undertaking makes no difference. Exported goods are zero rated. You can show in Column 8 A 8 B etc.


10 Dated: 2-10-2017
By:- KASTURI SETHI

There is a difference between zero rated and NIL. Exempted goods also carry separate category for the purpose of accountal and filling in GSTR returns. One has to be careful.


11 Dated: 3-10-2017
By:- KASTURI SETHI

Against export you are eligible for ITC and against NIL and exempted you are not eligible for ITC. You have not followed export procedure. This is the difference.


12 Dated: 3-10-2017
By:- Bipul Goyal

Thank you sir. What will be better to do ? Can you please suggest me a good CA. you can fill up GST return.


13 Dated: 3-10-2017
By:- KASTURI SETHI

I do not prepare returns. You may contact expert CA in your city.


14 Dated: 8-10-2017
By:- Bipul Goyal

Namaste sir.

after gst council meeting. Do you thing there will be any changes for me ?


15 Dated: 8-10-2017
By:- KASTURI SETHI

Wait for notifications.


1

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