GST for Amazon Global Selling – Complete Guide to Exports, LUT & GST Compliance

What is Amazon Global Selling?

Amazon Global Selling is a program that enables Indian sellers to list and sell their products on Amazon's international marketplaces such as Amazon.com (USA), Amazon.co.uk (UK), Amazon.de (Germany), Amazon.ae (UAE), Amazon.co.jp (Japan), and many others. Through this program, Indian businesses can reach millions of international customers without setting up a physical presence abroad. Amazon provides services like international logistics (FBA Export), payment processing, and customer support. From a GST perspective, every sale made through Amazon Global Selling is an export of goods from India. This makes the transaction a zero‑rated supply under the IGST Act. DisyTax has helped over 1,000 Indian sellers navigate the GST compliance for Amazon Global Selling. Start with our GST basic terms to understand the fundamentals.

How Amazon Global Selling Works for Indian Sellers

The process typically involves:

1. Register as a Seller: Sign up on Amazon Global Selling and choose your target marketplace.
2. List Products: Create listings with product details, pricing, and inventory.
3. Receive Orders: International customers place orders on the foreign Amazon site.
4. Prepare Shipment: You can either ship directly to the customer (Merchant Fulfilled) or send inventory to Amazon's international fulfillment centers (FBA Export).
5. Customs Clearance & Shipping: Amazon's partnered carriers or your own logistics provider handles export customs clearance and shipping. A shipping bill is filed with Indian Customs.
6. Receive Payment: Amazon settles the payment in your Indian bank account after deducting fees. The payment is received in INR (converted from foreign currency by Amazon).

Each step has GST implications, from invoicing to reporting. Understanding these is critical for compliance and claiming refunds.

Is GST Registration Mandatory for Amazon Global Selling?

Yes, GST registration is mandatory for all sellers on Amazon Global Selling. Since you are exporting goods, you need a valid GSTIN to file a Letter of Undertaking (LUT), claim IGST refund, issue export invoices, and comply with customs documentation. As per Section 24 of the CGST Act, persons making inter‑state supplies (exports are inter‑state) must register irrespective of turnover. Even if your domestic turnover is below ₹40 lakh, you must register for GST before you can export through Amazon. Amazon also requires your GSTIN during the seller onboarding process. DisyTax can get your GST registration done within 7 working days.

Export of Goods Through Amazon Under GST

When you sell a product on Amazon Global and it is shipped to a customer outside India, it is an export of goods. Under Section 2(5) of the IGST Act, export of goods means taking goods out of India to a place outside India. The GST law treats all exports as zero‑rated supplies under Section 16 of the IGST Act. This means you do not collect any GST from the foreign buyer. The export is processed through customs, and a shipping bill is generated. This shipping bill is the key document for GST compliance and refund. For a detailed understanding of goods exports, see our Export of Goods Under GST guide.

Are Amazon Global Sales Zero Rated Supplies?

Yes, all sales through Amazon Global Selling are zero‑rated supplies under GST. This is because they qualify as exports of goods. As a zero‑rated supply, you have two options under Section 16(3) of the IGST Act: (a) export under a Letter of Undertaking (LUT) without payment of IGST, or (b) export with payment of IGST and claim a refund. The LUT route is the most common and recommended for Amazon sellers because it avoids upfront IGST payment and preserves working capital. The GST rate on the export invoice is 0%.

LUT for Amazon Global Selling

An LUT (Letter of Undertaking) is a declaration filed on the GST portal that allows you to export goods without paying IGST at the time of export. For Amazon Global sellers, this is the most important GST document. Without LUT, you would have to pay IGST on every export shipment and later claim a refund, which can take weeks or months. The LUT is valid for one financial year and must be filed before your first export of that year. DisyTax files LUTs for Amazon sellers within 24 hours. For step‑by‑step filing, see our LUT for Export Business guide.

Export Under LUT Without Payment of IGST

Once your LUT is active, you can issue export invoices without any IGST. Each invoice must contain the declaration: "Supply meant for export under LUT without payment of IGST". In the shipping bill, you must select the LUT option and mention the LUT ARN. Amazon's partnered carriers or your customs broker will handle this. You must report these export invoices in GSTR‑1 Table 6A. Since no IGST is paid, there is no IGST refund to claim. However, the input tax credit on your purchases and expenses keeps accumulating. You can claim a refund of this accumulated ITC via Form GST RFD‑01. Example: A Jaipur‑based handicraft seller exports a shipment to the USA via Amazon Global. The export invoice shows $500 value with 0% GST. The LUT ARN is mentioned in the shipping bill. The goods clear customs without IGST payment. Later, the seller claims ITC refund on packing materials and raw material purchases.

GST Refund for Amazon Export Sellers

Amazon Global sellers can claim two types of GST refunds:

• Refund of accumulated ITC (under LUT): File Form GST RFD‑01 on the GST portal with export invoices, shipping bills, and proof of foreign exchange receipt (Amazon settlement reports, bank statements). The refund is processed within 60 days.
• Refund of IGST paid on exports: If you chose to pay IGST on exports, the refund is largely automatic. The system matches your shipping bill data with GSTR‑1. If they match, the IGST is credited to your bank account. This process is faster but requires upfront IGST payment.

For regular Amazon exporters, the LUT + ITC refund route is more cash‑efficient. Our GST Refund for Exporters guide provides complete step‑by‑step instructions.

GST on Foreign Buyers and International Orders

You must never charge GST to the foreign buyer on Amazon Global. The export invoice is zero‑rated. The buyer pays the product price plus any international shipping charges (which Amazon handles separately). The GST is not included in the price. This makes your products competitive in the international market. The only tax that the foreign buyer may pay is the import duty and taxes in their own country, which is collected by their customs authorities. Amazon may show an estimated import fee deposit during checkout, but that is not your GST. You only need to ensure that your export documentation is GST‑compliant.

GST Invoice Requirements for Amazon Export Sales

Your export invoice must contain:

• Your name, address, and GSTIN
• Buyer's name and foreign address
• Invoice number and date
• Description of goods, HSN code, quantity, and value in foreign currency
• INR equivalent value (using customs exchange rate)
• Shipping bill number and date (can be added later)
• Declaration: "Supply meant for export under LUT without payment of IGST"
• Country of destination

Amazon may auto‑generate an invoice for the buyer, but as the seller, you are legally responsible for the accuracy of the GST invoice. Use our GST invoice format to create compliant invoices.

Shipping Bill Requirements for Amazon Exports

The shipping bill is the customs document that proves export. For Amazon Global sellers using Amazon's partnered carriers (e.g., Amazon Global Logistics, DHL, FedEx), the carrier typically files the shipping bill on your behalf. You must ensure:

• Your GSTIN is correctly mentioned in the shipping bill.
• The export invoice number matches the shipping bill.
• The LUT ARN (if exporting under LUT) is referenced.
• After export, download the shipping bill from the carrier or ICEGATE portal and match it with your records.

For FBA Export, where you send inventory to Amazon's international warehouse, a shipping bill is generated for the bulk shipment. You must then report individual sales as exports based on the inventory movement. Our shipping bill guide explains the process in detail.

Documents Required for Amazon Global Selling

• GST Registration Certificate
• Import Export Code (IEC) – mandatory for all exports
• LUT (Letter of Undertaking) – filed on GST portal
• Export Invoice – with LUT declaration
• Shipping Bill – filed with Customs
• Bill of Lading / Airway Bill – from the carrier
• Amazon Seller Agreement – proof of platform registration
• Bank Account Proof – for receiving export proceeds
• FIRC / BRC – from bank as proof of forex receipt (Amazon settlements may serve as proof)

Maintain all documents for at least 72 months as required by GST law.

GST Return Filing for Amazon Export Sellers

As an Amazon Global seller, you must file regular GST returns:

• GSTR‑1: Report all export invoices in Table 6A – with LUT option selected. Due 11th (monthly) or 13th after quarter (QRMP).
• GSTR‑3B: Report export turnover as zero‑rated supply. Claim ITC on purchases and Amazon fees. Due 20th (monthly) or 22nd‑24th (QRMP).
• GSTR‑9: Annual return.

Accurate reporting is critical because refunds depend on the matching of shipping bill, GSTR‑1, and GSTR‑3B data. Any mismatch can cause delays or rejection. Our GST return filing guide is a helpful resource.

Reporting Export Sales in GSTR‑1

In GSTR‑1, you report each export invoice in Table 6A. Key fields:

• Invoice number and date
• Port code and shipping bill number
• Invoice value in foreign currency and INR equivalent
• Taxable value and GST rate (0% for LUT route, or applicable IGST rate if paying IGST)
• Select "Without payment of IGST" if exporting under LUT

For Amazon sellers, you can aggregate daily or weekly sales into a single export invoice, but the shipping bill data must correlate. It's recommended to maintain a detailed reconciliation between Amazon settlement reports and GSTR‑1 data. DisyTax provides automated reconciliation for Amazon sellers.

Reporting Export Transactions in GSTR‑3B

In GSTR‑3B, report the total export turnover under Table 3.1(b) as "Zero‑rated supplies". Claim your input tax credit in Table 4(A). If you paid IGST on exports, the IGST amount is reflected in the liability and paid through the cash ledger. Ensure that the ITC claimed matches GSTR‑2A. For Amazon sellers, the ITC on Amazon fees (18% GST) is a significant component. Download the GST invoices for Amazon fees from Seller Central and claim ITC accordingly.

Input Tax Credit (ITC) Benefits for Amazon Exporters

As an exporter, you can claim ITC on all business expenses and get a refund since your output is zero‑rated. Key ITC sources:

• Amazon Global Selling fees: Referral fees, FBA fees, advertising fees – all with 18% GST.
• Inventory purchases: GST paid on raw materials or finished goods.
• Packaging and shipping: Boxes, courier charges, freight to port.
• Professional services: CA fees, legal, consulting.
• Capital goods: Machinery, computers, etc.

Our ITC guide covers all conditions and refund procedures.

Common GST Mistakes Made by Amazon Global Sellers

GST Compliance Checklist for Amazon Global Selling

• ✅ Obtain GST registration and IEC before starting to sell.
• ✅ File LUT at the beginning of each financial year.
• ✅ Issue proper export invoices with LUT declaration for every shipment.
• ✅ Ensure shipping bill data matches export invoices exactly.
• ✅ Download and preserve all Amazon settlement reports and GST invoices for fees.
• ✅ Report all export sales in GSTR‑1 Table 6A.
• ✅ Claim ITC on purchases, Amazon fees, and expenses in GSTR‑3B.
• ✅ File refund application (RFD‑01) for accumulated ITC if using LUT route.
• ✅ Maintain all export documentation for at least 72 months.
• ✅ Reconcile Amazon settlement data with GST returns monthly.

Frequently Asked Questions (FAQs) on Amazon Global Selling GST

📚 Essential GST Resources for Amazon Global Sellers