14 January 2019
Many E Commerce Sellers have already accumulated huge Input credits due to 18% GST on commission charged by ecommerce operators. Can they claim refund of ITC as it includes ITC of Goods, Commission & Others services and Fixed Assets purchased by them (They are buying/selling goods in 5% category). Kindly suggest refund procedure.
15 January 2019
As the case, it may belongs to the condition of inverted tax structure. Let's take an example Selling goods having Taxable Value 100 Rs (GST 5%) E-Commerce Selling and Distribution charges attributable to the sale will be 30% of the Sale Value(Approximately) 10 Rs will be the margin for the seller, 60 Rs will be the cost.
So, GST output Rs 5 GST input of goods Rs 3 GST Input of Services Rs. 5.4
So. Net ITC Available will be Rs. 3.4 per 100 It will only accumulates. So, this conditions only happens in case of inverted tax structure.