Sales through Amazon out side India
This query is : Resolved
25 November 2023
My question is regarding export, which is done to e-commerce operators. For example, I have taken a warehouse from Amazon and they charge us for it.
The problem is what is considered a sale. See below points -
1. When we send goods to another country, should it be sent at cost and considered as stock transfer, and whenever goods are sold from Amazon warehouse, then it should be considered as sale?
2. Or when we send goods out of India, it should be considered as export at that time. And show in GST Return as Export.
If we follow the first point, then some questions arises that how will we book the sales happening abroad (for example - the goods came out of the warehouse in the US and were sold to a customer in the US) in India? Will you book export sales every time? Will this be okay? If not then what should be the treatment in books?
And if we follow the second point then we will have to export the goods at MRP. By doing this, according to FEMA's ruling, payment should be received from abroad within 9 months. But payment will be received only when the goods are sold there.
Please provide guidance and share any circular of ruling upon it.
Thank You
The problem is what is considered a sale. See below points -
1. When we send goods to another country, should it be sent at cost and considered as stock transfer, and whenever goods are sold from Amazon warehouse, then it should be considered as sale?
2. Or when we send goods out of India, it should be considered as export at that time. And show in GST Return as Export.
If we follow the first point, then some questions arises that how will we book the sales happening abroad (for example - the goods came out of the warehouse in the US and were sold to a customer in the US) in India? Will you book export sales every time? Will this be okay? If not then what should be the treatment in books?
And if we follow the second point then we will have to export the goods at MRP. By doing this, according to FEMA's ruling, payment should be received from abroad within 9 months. But payment will be received only when the goods are sold there.
Please provide guidance and share any circular of ruling upon it.
Thank You
26 November 2023
In GST there not thought of Stock Transfer.Whatever you will send out of India will be treated as Export and you will have to follow export procedures like preparation of pre export documentation and file the with customs and get the goods customs cleared.So far as concerned to receipt of payment of export as per FEMA the payment should be received in 9 months from the date of export.
You can seek extension for receipt of payment to RBI citing stock transfer stock lying outside India for sale through Amazon.
In GST return you have to declare it as export sale.
You can seek extension for receipt of payment to RBI citing stock transfer stock lying outside India for sale through Amazon.
In GST return you have to declare it as export sale.
05 December 2023
Sir, Thank Your for reply. But question is about goods not actually sold. It is transferred in the warehouse of Amazon-USA only. Should not it be like this that, whenever there is a sale done through Amazon in USA, here in India we book it?
05 December 2023
We are paying rent for warehouse taken from Amazon.
05 December 2023
You have to follow customs and GST process as export.
For accounting you can treat it as sale when it's sold from US warehouse.
For accounting you can treat it as sale when it's sold from US warehouse.
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