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

[real.phoenix]

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.

[superiorgems]

hello brother Mustufa Baldiwala, i am also seller like you on ebay for past 10 years and i also have not found any soluation and also my auditior is in fix.

have you filed your gst return for month of augest ?  if you have can you guide us on he buyinvoice procudure, inr, $, dues actual name of the buyer and country has to be mentoned in the invoice ect, please  share your concerns which has been solved or otherwise, i will also update here if i get any information as there is not proper response from ebay team, thank you

[real.phoenix]

Hi Superiorgems

Thank you for sharing your concern.

Yes, we have filed our July GST. 

We paid IGST because unlike commercial exporters we (all eBay sellers) do not have any provision for avialing Shipping Bill. The Postal Bill of Export is possible for us but that involves lort of paperwork and is not possible for people sending 15 to 20 shipments daily. 

Our Buyer Invoices are in USD or GBP. But for every USD/GBP Invoice, we have a corresponding invoice in INR for filing GST returns.

Until today, 7th September 2017, our business has no clear guidelines on GST. If we evade GST by considering it as Export then we may have to face a huge penalty after 1 or 2 years. Hence, it is better to pay the tax then then wait for the update from the tax authorities.

Mustufa

[pahal.creations]

Hello Mustafa,

Did you use Ebay invoice for claiming Input Tax Credit on Ebay Fees. Ebay billing cycle is 16th of current month to 15th of next month and the invoice number is not according to GST. For claiming GST we have to calculate GST paid from the Ebay bills of two succeding months all by ourselves. At the same time we are not sure how is Ebay going to derive that number (GST paid by us on fees) and file in GSTR-8. There is a high chance of mismatch leading to loss of this credit.

How are you managing input tax credit on Ebay Fees. Did you see any B2B invoice originating from Ebay in GSTR-2A to be able to claim input tax credit.

Also in HSN wise summary in GSTR-1 what can we do regarding the point of sale as items are not getting consumed in India. Are you just picking up any other state different from where you reside just for the sake of system considering it a intrastate sales so that we can pay IGST ?

Looking for answers. Thanks in advance

Best Regards

Pahal 

[decor8003945]

https://m.facebook.com/story.php?story_fbid=1443229082413244&id=1246164912119663

[decor8003945]

Hi mustafa
Please tell me that the amount we recieve through paypal is legal or not if we do not clear each transaction through firc because government ask for proof of export and if we clear the paypal payments which is 236 rs for each firc.
So if we do not clear the payment through firc will it be considered as legal??

[real.phoenix]

PayPal is approved by RBI. Hence payment received via PayPal are legal.

FIRC is not mandatory because
1. RBI knows that currency received in PayPal is either foreign currency or Indian currency received from a source outside of India.

2. When money is transferred from PayPal to Citibank, the term 'Crossborder sales of goods and services' is used. This revokes the need of an FIRC.

3. For proof of export on ecommerce sales, following documents would suffice:

3.1 ) Post Office Receipts - Speed Post or Registered Airmail or Parcel.

3.2 ) PayPal transaction details on email and PayPal reports.

3.3 ) eBay transaction details - The print out of 'Congratulations. Your eBay Item Sold!'

3.4 ) The bank statement that confirms payment was received from PayPal.

3.5 ) Comfirmation of Order being delivered by the customer either in form of an eBay message or a feedback. OR. The tracking of the shipment that shows that the shipment has left Indian customs. (ips web should show 'item inserted into bag' after customs clearance.

If a government officer denies to accept these documents as exports, you need not worry. You can ask them to send you written memo as how they do not consider it as an export. Thereafter, you can approach for a legal help from judiciary.

Small shipments via Post do not generate shipping bills. Government officers will keep on insisting for shipping bill. You have to provide all above documents to convince them. Else you need to approach judiciary.

[real.phoenix]

This 1% composite scheme is not for online retailers. You will have to pay as a normal business. Composite does not apply for you.

[real.phoenix]

Hi Pahal

We pay IGST and mention as Exports.

This solution was provided by Tally.

My accountant is able to find a solution for this. Few sellers in Delhi and Mumbai does the same.

I'll share screen shots in a few days.

Mustufa

[pahal.creations]

Hello Mustafa,

I just relooked at the GST portal and it seems that Port Code is no longer a mandatory field in export invoices. So we can just fill all our data in export invoices and pay IGST. I am still curious to know how you did it.

Best Regards

Pahal Creations

[real.phoenix]

Export Taxable in Tally.