IGST refund on Affiliate commission income

This query is : Resolved

Ashish Agarwal (Querist)
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19 February 2024 I am an exporter exporting goods for which i pay GST and get IGST refund from customs (its easier to get refund from customs rather than the department). Soon i will start earning income from affiliate marketing from Amazon and other foreign Affiliate programs ( some will be remitting in dollars and other in INR). I have a website in which i write articles including affiliate links and earn affiliate commission when someone buys products by clicking on those links. As per my knowledge, this affiliate income is treated as export of services and I am eligible for IGST refund (whether i receive in dollars or INR) since the payment is coming from Outside India. Please let me know the best way to get IGST refund for this affiliate income and can i have different systems for refund for my export of goods ( refund from customs after payment of IGST) and export of services(affiliate income) under the same GSTIN ? Both the businesses are done under the same proprietorship concern

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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09 July 2024 For claiming IGST refund on your affiliate income, which is considered export of services under GST, here’s how you can proceed:

### Claiming IGST Refund for Export of Services (Affiliate Income):

1. **Understand Export of Services:**
- Affiliate income earned from international transactions where the service is provided outside India qualifies as export of services under GST.

2. **Eligibility for IGST Refund:**
- You are eligible to claim IGST refund on the export of services, provided you comply with GST rules and regulations for export of services, including filing necessary returns and maintaining required documentation.

3. **Procedure:**
- Ensure you accurately report your export of services in your GST returns (GSTR-1 and GSTR-3B).
- Specify these transactions under the appropriate HSN code and export service code (SAC).
- Maintain invoices, agreements, and other relevant documents to support your claim.

4. **Different Systems for Refund:**
- Yes, you can have different systems for claiming IGST refund:
- **For Export of Goods:** Claim IGST refund from customs after the payment of IGST at the time of export.
- **For Export of Services (Affiliate Income):** Claim IGST refund through the GST portal for export of services.

5. **Separate Accounting:**
- Maintain separate accounting records for export of goods and export of services to facilitate accurate reporting and refund claims.

**Compliance and Documentation:**
- Ensure compliance with all GST regulations related to export of services, including filing of returns within due dates and proper documentation maintenance.

### Note:
- Make sure to consult with a GST practitioner or tax advisor to ensure compliance with GST laws specific to your business scenario.
- Keep track of changes in GST regulations that may affect your eligibility or the process for claiming IGST refund on export of services.

By following these steps and maintaining accurate records, you can effectively claim IGST refund on both export of goods and export of services (affiliate income) under the same GSTIN for your proprietorship concern.