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Amazon wholesale arm now lets customers claim GST credit while shipping to GST unregistered states
Amazon Business customers, which are largely MSMEs, will now be able to claim GST credit for orders delivered across India with GST registration in only one state. Through its ‘Bill to Ship to’ feature, Amazon Business would let customers with GSTIN registration for one or a few states but want to get their shipments delivered across the country to manage their indirect office expenses better. So far, customers were able to get GST invoices only for the orders shipped to a state where they had a GSTIN registration. This caused “customer inconvenience as the billing address on the invoices were same as shipping address and customers who did not have GSTIN for shipping address could not claim GST Input tax credit for such orders,” Amazon said.
Amazon Business is the B2B wholesale marketplace of Amazon in India catering to the needs of different institutions such as hospitals, clinics, manufacturers, universities, schools, NGOs, government bodies, and offices. Amazon also offers procurement solutions to its business customers. The new feature addresses the invoicing concerns of businesses. According to Amazon, as long as customers have one GSTIN in their business account, they will be able to get GST invoice for all their business orders using new address-invoice billing address which will get shown to them during checkout workflow.
“With the launch of the ‘Bill to Ship to’ feature we have taken a lead in solving this unique customer problem and offered a solution which allows them to claim GST credit on their billing address for their pan-India shipments. This convenient feature allows customers to consolidate the tax credit to one state and make use of GST credit more effectively,” said Peter George, Director, Amazon Business in a statement.
Amazon Business marketplace offers more than “15 crore GST-enabled products” across categories, along with other business features such as multi-users account, orders approval, shared payment methods, and detailed business analytics. In its 2020 round-up of the B2B arm, Amazon Business had claimed over 90 percent increase in customer base in comparison to 2019 and more than 85 percent jump in total orders.
