How to claim GST credit on your Amazon Purchases

Thanks to the introduction of the GST in India, you can now claim credit for taxes paid on purchases of most items in your business against your tax liability. Amazon has grasped this opportunity to launch Amazon Business where they allow you to make your business purchases on Amazon and get GST invoices on the same.

It basically means that whatever tax you are charged on your business purchases, you can claim them and set them off against the GST charged on your business sales.

An example:

Purchase item – Rs. 100

GST @ 18% – Rs. 18

Sale – Rs. 200

GST @ 18% – Rs. 36

The final amount of GST to be paid to the government is Rs. 18, that is GST charged on sale (Rs. 36) less GST charged on purchase (Rs. 18).

This means your purchase cost for calculation purposes shall be Rs. 100 only.

Getting a GST invoice on your purchases can lead to incredible savings and cost efficiencies for your business over time. It has been made quick and easy by Amazon.

All you need to do is follow the below steps and you can get GST invoices on most of your purchases.

Step 1:

Go to:

Click on “Register now”

Step 2:

Click “No” if you want to register your business account on a separate email than your personal account (recommended).

Step 3:

Enter your details as given below. Remember, you need to be registered under GST to open an Amazon Business Account. It will then ask you to upload your GST registration certificate to verify. The verification process usually takes 1-2 days.

Step 4:

Once you are verified by Amazon, you can start making purchases which are eligible for GST. You can filter out items while browsing to make sure only items which have GST invoices show up.

Step 5:

Now once you order an eligible GST item, you can check the invoice with your GST number once the order has shipped. You will be able to avail input credits off your purchases.