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Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Hi eBay Team My name is Mustufa Baldiwala and I have been selling cross-border on eBay since April 2012 under the eBay ID: real.phoenix

I have following concerns related to invoicing after implementation of GST.

1. How to preprare in Invoice. Could you share a post GST sample invoice for Exports please?

2. Should we mention INR or the foreign currency in the invoice?

3. Should we charge the IGST to the customer and then ask for a refund while filing the returns or since it is an export, we need not pay the GST and therefore not charge the IGST?

4. What evidences of Export do we need to submit while claiming the ITC?

5. How do we send an LUT? Will eBay help all of its cross-border sellers in regarding to obtaining the LUT?  We believe, if eBay initiates the process of LUT for its cross-border sellers then it will eliminate 99% of hurdles in exports and eBay Cross-border business will reach to new heights.

Since eBay is the first company to promote the cross-border online sales, we as sellers on eBay expect eBay to help us in this regard. At the moment, we find an absolute vaccum of understanding and absolute lack of help from eBay. There has been no communication from eBay in these vital matters that are really going to shape the future of cross border e-commerce in India.

We expect an Online Session (a Webinar) inviting all the senior sellers on eBay at a particular day so that we can learn these important aspects to save our businesses on eBay.


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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

ebay exports  do not come under commercial exports unless you send thorugh proper channel.

In GSTR 1, there is an option to get IGST refund for exports, but you have to give the port number there through which you shipped the order. 

Port number is availableonly when you ship the order commercially and customs clearance charges are around rupees 1700 to 1800 for one shipment.

 

So, if you are selling small value items, then there is no question of paying 1800 for customs clearance and then taking IGSt benefit.

Government has not done anything regarding thisproblem as yet for ecommerce sellers.

 

 

View solution in original post

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

ebay exports  do not come under commercial exports unless you send thorugh proper channel.

In GSTR 1, there is an option to get IGST refund for exports, but you have to give the port number there through which you shipped the order. 

Port number is availableonly when you ship the order commercially and customs clearance charges are around rupees 1700 to 1800 for one shipment.

 

So, if you are selling small value items, then there is no question of paying 1800 for customs clearance and then taking IGSt benefit.

Government has not done anything regarding thisproblem as yet for ecommerce sellers.

 

 

Message 2 of 34
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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Thank you for your response.

 

Does that mean that we have to procure the goods by paying the GST and also pay tax while selling them but we cannot get any refund. Does that mean we will have to pay the GST twice?

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Guys, If we can't call Ebay international sales as exports than how do you prepare invoices in GST Filing.

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Sir

 

if you purchase a product for rs 100 and @12% rs 12 gst is leived on that, costing you to will be rs 112.

and

you sell it for rs 120 + gst @ 12% = ( 120 + 14 .4 =134.4). then the rs 12 paid by you will be setoff against your 14.4 gst  output liability and you are supposed to pay only rs 2.4 (14.4 minus 12)

 

but in case of exports you can claim refund of full amount i.e rs 14.4.

also you have the option to purchase without paying gst to your suppliers

 

for any concerns feel free to contact me

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

There is no clearity as to how can we show our items as export. If we show them export then we have to submit shipping bills, that is custom papers and only then we could claim the refund otherwise there is no way to do it just keep on sending the items as sample after paying GST taxes of 5, 12 , 18 and 28 percent.

 

Already  the sales have taken a bad beat and on that unclearity of GST rules making sellers to think about the future prospects of our business. Smiley Sad

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

I sell CD's & DVD's only on eBay.com. My question is has anybody taken GST number and have filed the returns. If so what is the process. 

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Without a GST, you may not be allowed to sell on eBay after 11th September.

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Everyone is aware of this. However, in order to claim a refund, the exporter must provide the shipping bill (auto-popoluated in GST portal) or Postal Bill of Export (auto-populated). Hence, there is no option for any eBay seller as on 28th August 2017, but to pay the GST on the entire amount of sales.

Few sellers think that they can evade GST on the postage costs because it is exempted. However, such exporters fail to understand that GST is on the total payment received. Hence, the GST must be paid on the entire amount.

 

@If a seller receives USD 10.00 (Rs 600.00) in his PayPal and the postal cost is Rs 300.00 (approx USD 5.00), then also the seller must pay GST on Rs 600.00 @ rate of the product IGST rate. If the product falls under 12% then seller pays Rs 72.00 as IGST.

There is no escape to this.

 

Sellers who think otherwise, may be subjected to a heavy penalty later on.


@kapikakka_6 wrote:

Sir

 

@if you purchase a product for rs 100 and @12% rs 12 gst is leived on that, costing you to will be rs 112.

and

@you sell it for rs 120 + gst @ 12% = ( 120 + 14 .4 =134.4). then the rs 12 paid by you will be setoff against your 14.4 gst  output liability and you are supposed to pay only rs 2.4 (14.4 minus 12)

 

but in case of exports you can claim refund of full amount i.e rs 14.4.

also you have the option to purchase without paying gst to your suppliers

 

for any concerns feel free to contact me



@kapikakka_6 wrote:

Sir

 

@if you purchase a product for rs 100 and @12% rs 12 gst is leived on that, costing you to will be rs 112.

and

@you sell it for rs 120 + gst @ 12% = ( 120 + 14 .4 =134.4). then the rs 12 paid by you will be setoff against your 14.4 gst  output liability and you are supposed to pay only rs 2.4 (14.4 minus 12)

 

but in case of exports you can claim refund of full amount i.e rs 14.4.

also you have the option to purchase without paying gst to your suppliers

 

for any concerns feel free to contact me


 

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Re: Export Invoice, Availing LUT, Availing ITC and other Major Issues Post GST

Thank you very much for your response. I am thinking of enrolling in GST through composite scheme which attracts 1 percent tax on total monthly sales. Will there be any problem?

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