Amazon Global Selling Tax 2026 – Complete Guide to GST, LUT, IEC & Export Compliance for Indian Sellers

Step-by-step guide covering GST registration, LUT filing, IEC registration, zero-rated export invoicing, export incentives (RoDTEP & Duty Drawback), TCS reconciliation, GST refund claims, and compliance for Indian sellers on Amazon Global Selling. Everything you need to sell globally from India, tax-compliant.

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Quick Summary – Amazon Global Selling Tax

GST on Exports: Zero-rated supply — no GST charged on export invoices. Input Tax Credit remains available.
LUT Filing: Mandatory to export without paying IGST. Filed annually in Form RFD-11 on the GST portal.
IEC Registration: 10-digit code from DGFT — mandatory for all exports from India.
AD Code Registration: 14-digit code from your bank — must be registered on ICEGATE for shipping bill generation.
Export Incentives: RoDTEP (0.3% to 3% of FOB value) and Duty Drawback available on eligible shipments.
TCS: Amazon deducts 1% TCS on net taxable supplies under Section 52 of the CGST Act.
GST Refund: Claim refund of unutilized ITC through RFD-01. 90% provisional refund within 7 days.
GSTR-1 Reporting: Report exports in Table 6A (with IGST) or Table 6B (without IGST under LUT).
Government Fees: IEC, GST, LUT, and ICEGATE registration are free. Only DSC and RCMC have costs.
Amazon Global Selling: Helps Indian sellers reach 18+ global marketplaces including Amazon US, UK, UAE, and more.

Takeaway: Amazon Global Selling is one of the easiest ways to start exporting from India. But it comes with a tax compliance layer — GST, LUT, IEC, and TCS — that must be handled correctly to keep your refunds flowing and your seller account in good standing.

1. Introduction – Selling Globally on Amazon from India

Amazon Global Selling has transformed how Indian businesses reach international customers. Instead of setting up operations in multiple countries, a seller in Jaipur, Surat, or Coimbatore can list products on Amazon US, UK, UAE, and 15+ other marketplaces — and ship directly from India.

But cross-border selling brings a layer of tax compliance that domestic-only sellers never face. Exports are treated as zero-rated supplies under GST, which means no GST is charged to the foreign buyer, but Input Tax Credit remains available. To export without paying IGST upfront, you must file a Letter of Undertaking (LUT) annually. Your Import Export Code (IEC) is mandatory. Your bank's AD Code must be registered on ICEGATE. And every export invoice must be reported correctly in GSTR-1.

On top of this, Amazon deducts TCS at 1% on your net taxable supplies — which you must reconcile and claim as credit. Export incentives like RoDTEP and Duty Drawback are available but must be claimed at the shipping bill stage. And your GST refund depends on a clean data trail from shipping bill to GSTR-1 to RFD-01.

This guide covers every tax and compliance requirement for Indian sellers on Amazon Global Selling — from registration to refund, from LUT to TCS, from invoicing to incentives.

Takeaway: Amazon Global Selling is a powerful channel for Indian exporters. Getting the tax compliance right is what separates sellers who scale from those who get stuck in refund delays and notices.

2. GST on Exports – Zero-Rated Supply Explained

When you sell through Amazon Global Selling, your products are being exported from India to a foreign destination. Under GST law, this is a zero-rated supply — a supply where the tax rate is 0% but Input Tax Credit remains fully available.

Zero-Rated vs Exempt Supply

Parameter	Zero-Rated Supply (Exports)	Exempt Supply
GST Rate	0%	Nil
Input Tax Credit	Available	Not Available
Refund of ITC	Yes — through RFD-01	No
Examples	Exports, SEZ supplies	Certain food grains, healthcare

Two Routes for Exporting Through Amazon Global Selling

Route	GST on Invoice	Working Capital Impact	Refund Type
Export Without Payment of IGST (LUT Route)	No IGST charged	Zero blockage	Refund of unutilized ITC
Export With Payment of IGST	IGST charged at applicable rate	Up to 18% of export value blocked	Refund of IGST paid

Example – Zero Rating in Action: A seller on Amazon US exports handmade jewellery worth ₹15 lakh. The raw materials, packaging, and Amazon fees attract GST of ₹1.5 lakh. Because the export is zero-rated, the seller does not charge GST on the export invoice. The ₹1.5 lakh GST paid on inputs becomes unutilized ITC, which is claimed as a refund through RFD-01.

Takeaway: Always choose the LUT route to export without paying IGST. It eliminates working capital blockage and simplifies the refund process to a single ITC refund claim.

3. Mandatory Registrations for Amazon Global Selling

Before you can ship your first international order, you need a set of registrations. Here is the complete list with their purpose and issuing authority.

Registration	Purpose	Issuing Authority	Fee
GST Registration	Tax identity, LUT eligibility, refund claims	GST Department	Free
IEC (Import Export Code)	Mandatory authorisation for exports	DGFT	Free
LUT (Letter of Undertaking)	Export without payment of IGST	GST Portal	Free
AD Code	Bank account linkage for customs	Bank + ICEGATE	Bank charges apply
DSC (Class 3)	Digital signing of filings	Certifying Authority	₹1,500 – ₹3,500
RCMC (optional)	Export council membership, incentives	Export Promotion Council	Council-specific

GST Registration – Mandatory from Day 1

All sellers listing taxable products on Amazon India are required to provide a valid GSTIN to activate their account. For Amazon Global Selling, GST registration is mandatory because:

✅ You need a GSTIN to file LUT and export without IGST
✅ You need a GSTIN to claim refund of unutilized ITC
✅ Amazon deducts TCS on your sales under GST law
✅ Your export invoices must carry your GSTIN

IEC Registration – Your Export Identity

The IEC is a 10-digit code issued by DGFT. It is mandatory for any business importing or exporting goods or services from India — including selling abroad through Amazon Global Selling. It is a one-time registration, separate from your GSTIN.

LUT Filing – Export Without IGST

A Letter of Undertaking (LUT) in Form RFD-11 allows you to export without paying IGST upfront. It must be filed annually on the GST portal. Without an LUT, you would need to pay IGST on every export and then claim a refund — blocking working capital.

AD Code – Linking Your Bank to Customs

The AD Code is a 14-digit code issued by your bank. It must be registered on ICEGATE against your IEC. Without it, shipping bills cannot be generated for your Amazon Global Selling shipments.

Takeaway: These registrations form the foundation of your export compliance. Complete them in the correct sequence: GST → IEC → Bank Account → AD Code → LUT → ICEGATE.

4. LUT Filing for Amazon Global Selling – Step-by-Step

The LUT is the single most important document for Amazon Global Selling tax compliance. It allows you to export without paying IGST, keeping your working capital intact.

Why LUT Matters for Amazon Sellers

💰 No IGST on Export Invoices: You do not charge IGST to your foreign buyers.
📦 No Working Capital Blockage: Up to 18% of export value remains available for business.
⏱️ Faster Refunds: Only ITC refund is required — no separate IGST refund process.
✅ Cleaner Compliance: Simpler GSTR-1 reporting in Table 6B.

Step-by-Step LUT Filing Process

1 Login to GST Portal: Visit www.gst.gov.in and log in with your GSTIN credentials.

2 Navigate to LUT: Go to Services → User Services → Furnish Letter of Undertaking (LUT).

3 Select Financial Year: Choose the financial year for which LUT is being filed.

4 Upload Previous LUT (if renewal): Upload the previous year's LUT acknowledgement (PDF/JPEG, max 2 MB).

5 Fill Form RFD-11: Enter witness details (two Indian witnesses with name, address, occupation).

6 Tick Self-Declaration Boxes: Accept all three LUT conditions.

7 Sign with DSC or EVC: Companies/LLPs must use DSC; proprietors can use EVC.

8 Submit and Track: Submit the application. ARN is generated. Approval is usually instant to 1 working day.

LUT Validity and Renewal

Validity: One financial year (1 April to 31 March)
Renewal Deadline: Before 31 March of the preceding financial year
Consequence of Missing: IGST on all exports, blocking working capital

Example – LUT Impact: An Amazon Global Selling seller with monthly exports of ₹20 lakh would block IGST of ₹3.6 lakh (at 18%) every month without LUT. Over a year, this is ₹43.2 lakh stuck in refund cycles. With LUT, the entire amount remains available for inventory, advertising, and business growth.

Takeaway: File LUT in March every year for the next financial year. Do not wait until your first export — by then, you may be forced to pay IGST.

5. Export Incentives for Amazon Global Selling Sellers

As an exporter through Amazon Global Selling, you are eligible for two major government incentives that can significantly improve your profit margin.

RoDTEP – Remission of Duties and Taxes on Exported Products

RoDTEP refunds embedded central, state, and local taxes that are not refunded under GST or Duty Drawback. These include electricity duty, fuel excise, mandi tax, and other hidden costs.

Parameter	Detail
Rate Range	0.3% to 3% of FOB value (product-dependent)
Benefit Format	Electronic duty credit scrip on ICEGATE
Eligibility	Exporters with valid IEC exporting notified HS codes
Courier Exports	Eligible from September 2024 with valid documentation
How to Claim	Declare RoDTEP while filing shipping bill on ICEGATE

Duty Drawback

Duty Drawback refunds customs and excise duties paid on raw materials used to manufacture exported goods. It is available to both manufacturer and merchant exporters, including e-commerce sellers.

Eligibility: Any exporter filing shipping bills with Duty Drawback claim indicated
How to Claim: Declare the claim while filing the shipping bill on ICEGATE
Courier Exports: Eligible from September 2024

State-Level Export Promotion Schemes

Several state governments offer additional incentives for e-commerce exporters:

Uttar Pradesh Export Promotion Policy

Up to 75% reimbursement on international e-commerce onboarding costs, up to ₹3 lakh per unit per year.

Rajasthan Export Promotion Policy

Up to 75% reimbursement on certifications, marketing, and tech upgrades, up to ₹2 lakh per unit for 2 years.

Example – Combined Incentive Impact: An Amazon Global Selling seller exports leather goods worth ₹50 lakh in a year. RoDTEP at 1.3% gives ₹65,000. Duty Drawback on inputs gives ₹40,000. A state reimbursement scheme covers ₹50,000 of platform onboarding costs. Total additional benefit: ₹1,55,000 — a 3.1% margin boost.

Takeaway: Always claim RoDTEP and Duty Drawback at the shipping bill stage. These incentives are your legal entitlement and directly improve your profitability on Amazon Global Selling.

6. TCS Reconciliation for Amazon Sellers

Amazon, as an e-commerce operator, is required to collect TCS at 1% on the net value of taxable supplies made through its platform. This TCS is deducted from your seller payouts and deposited with the government.

How TCS Works

📌 Rate: 1% (0.5% CGST + 0.5% SGST for intra-state, or 1% IGST for inter-state)
📌 Applicable On: Net taxable supplies (gross sales minus returns)
📌 Reporting: Amazon files GSTR-8 monthly, reporting TCS collected from each seller
📌 Your Credit: TCS appears in your GSTR-2A under the TCS credit section
📌 Claim: Use TCS credit in GSTR-3B to offset your GST liability

Step-by-Step TCS Reconciliation

1 Download Amazon Reports: Get Date Range Report, Settlement Report, and Tax Document Library from Seller Central.

2 Compare with GSTR-1: Match Amazon sales data with your GSTR-1 outward supplies.

3 Verify TCS in GSTR-2A: Check the TCS credit section in GSTR-2A.

4 Identify Mismatches: Find differences due to returns, timing, or GSTR-8 filing delays.

5 Claim in GSTR-3B: Utilise TCS credit against your GST liability.

6 Resolve Discrepancies: If TCS is less than expected, follow up with Amazon. If more, adjust in next return.

Common TCS Issues

TCS Not Appearing in GSTR-2A Amazon may not have filed GSTR-8 for the period, or there is a GSTIN mismatch. Verify your GSTIN in Seller Central matches your GST registration. Wait for Amazon to file GSTR-8. Escalate if delayed beyond 10 days.

TCS Amount Mismatch TCS reported by Amazon does not match your calculation. Reconcile settlement reports with GSTR-1. Differences usually arise from returns, cancellations, or timing of order vs. settlement.

Over-Claiming TCS Credit Claiming more TCS credit than what appears in GSTR-2A. Only claim TCS credit that is reflected in GSTR-2A. Over-claiming triggers notices and demands.

Not Reconciling at All Filing returns without matching Amazon reports with GSTR-1. Build a monthly reconciliation routine. This is the single biggest cause of GST notices for Amazon sellers.

Takeaway: TCS reconciliation is not optional — it is the foundation of GST compliance for Amazon sellers. Build a monthly routine and stick to it.

7. GST Refund Process for Amazon Global Selling

As an exporter under LUT, you do not charge GST on export invoices. But you do pay GST on your inputs — packaging, logistics, Amazon fees, raw materials. That GST becomes unutilized ITC, which you can claim as a refund.

Refund Filing Process

1 File GSTR-1: Report exports in Table 6B (for LUT exports) for the relevant month.

2 File GSTR-3B: Disclose zero-rated supply value in Table 3.1(b) and ITC in Table 4.

3 Reconcile Data: Match shipping bill data from ICEGATE with GSTR-1 invoice details.

4 Prepare Documents: Gather shipping bills, invoices, e-BRC, and CA-certified statement.

5 File RFD-01: Apply for refund of unutilized ITC on the GST portal.

6 Track Provisional Refund: 90% of the claim is sanctioned within 7 days.

7 Receive Final Refund: Full refund is processed within 60 days from complete application.

Key Documents for Refund

GSTR-1 and GSTR-3B acknowledgement receipts
Statement of invoices (Annexure to RFD-01)
Shipping bill copies from ICEGATE
Export invoices with GSTIN, IEC, and shipping bill numbers
Bank Realisation Certificate (e-BRC)
CA/CMA certified statement reconciling ITC

Amazon-Specific Refund Considerations

Amazon Proxy Shipping Bill: If Amazon files shipping bill on your behalf, verify your GSTIN is correctly referenced.
Merchant Token Reconciliation: Match Amazon order IDs with shipping bill numbers for refund tracking.
Amazon Fee ITC: Claim ITC on Amazon referral fees, FBA fees, and advertising costs — these are your input services.
Multiple Shipping Bills: FBA shipments may generate multiple shipping bills per order — reconcile all of them.

Example – Refund Calculation: An Amazon Global Selling seller has:
• Export turnover: ₹30 lakh
• Input GST paid on packaging, logistics, Amazon fees, and raw materials: ₹2.8 lakh
• Domestic taxable supplies: ₹8 lakh
• ITC utilised against domestic liability: ₹1.2 lakh
• Unutilized ITC available for refund: ₹1.6 lakh
The seller files RFD-01 for ₹1.6 lakh refund. 90% (₹1.44 lakh) is provisionally credited within 7 days. Full refund is processed within 60 days.

Takeaway: Keep your shipping bill, GSTR-1, and refund application data perfectly aligned. A single mismatch can delay your refund by months.

8. Common Tax Mistakes by Amazon Global Selling Sellers

These are the most common tax and compliance errors committed by Amazon Global Selling sellers — and how to avoid them.

Mistake 1: Not Filing LUT Before First Export Paying IGST upfront on early shipments and losing working capital. File LUT for the financial year before your first export. Set a reminder for March every year.

Mistake 2: Using Wrong GSTIN on Shipping Bill GSTIN mismatch between shipping bill and GSTR-1 blocks refund. Verify GSTIN on every shipping bill. If Amazon files on your behalf, confirm the GSTIN referenced is correct.

Mistake 3: Not Reporting Exports in Table 6B Exports reported as domestic supplies, creating false tax liability. Always report LUT exports in Table 6B of GSTR-1. Verify before submitting.

Mistake 4: Ignoring TCS Reconciliation Not matching Amazon TCS reports with GSTR-1 and GSTR-2A. Build a monthly reconciliation routine. Use DisyTax's Amazon TCS Reconciliation Guide for step-by-step process.

Mistake 5: Missing Export Incentives Not claiming RoDTEP or Duty Drawback at the shipping bill stage. Mark RoDTEP and Drawback as "Y" during shipping bill filing. These are your legal entitlements.

Mistake 6: Not Claiming Amazon Fee ITC Missing ITC on Amazon referral fees, FBA fees, and advertising costs. Download GST invoices from Amazon's Tax Document Library and claim ITC in GSTR-3B.

Mistake 7: Filing Refund Without Reconciliation Refund claim rejected due to shipping bill and GSTR-1 data mismatch. Reconcile ICEGATE and GST data every month before filing returns and refund claims.

Mistake 8: Missing LUT Renewal Deadline LUT expired, forced to pay IGST on April exports. Renew LUT before 31 March each year. Mark the calendar.

Mistake 9: Not Maintaining e-BRC Refund claim stuck due to missing Bank Realisation Certificate. Download e-BRC from your bank after export proceeds are received. Attach it with the refund application.

Mistake 10: Not Tracking Refund Status Refund pending indefinitely without follow-up. Track RFD-01 status on the GST portal. If pending beyond 60 days, follow up with the jurisdictional officer.

Takeaway: Most Amazon Global Selling tax errors are preventable with a structured compliance routine. Build the process once, and you avoid repeated mistakes.

9. Frequently Asked Questions – Amazon Global Selling Tax

Yes — GST registration is mandatory for all sellers listing taxable products on Amazon India. For Amazon Global Selling (exports), you need GSTIN to file LUT, claim refunds, and comply with TCS provisions.

No — exports are zero-rated supplies. No GST is charged on export invoices. You can claim refund of unutilized Input Tax Credit on your inputs.

A Letter of Undertaking (LUT) in Form RFD-11 allows you to export without paying IGST upfront. It must be filed annually on the GST portal. Without LUT, you pay IGST and claim refund later — blocking working capital.

LUT should be filed before 31 March of the preceding financial year for uninterrupted IGST-free exports from 1 April.

Yes — IEC is a 10-digit code issued by DGFT. It is mandatory for any business exporting goods or services from India, including selling through Amazon Global Selling.

Amazon deducts 1% TCS on your net taxable supplies under Section 52 of the CGST Act. This TCS appears in your GSTR-2A and can be claimed as credit in GSTR-3B.

File GSTR-1 (Table 6B for LUT exports) and GSTR-3B, then file RFD-01 for refund of unutilized ITC. 90% provisional refund is sanctioned within 7 days; full refund within 60 days.

RoDTEP refunds embedded central, state, and local taxes on exports. Rates range from 0.3% to 3% of FOB value. Claim it by marking RoDTEP as "Y" during shipping bill filing on ICEGATE.

Yes — ITC is available on Amazon referral fees, FBA fees, advertising costs, and other input services. Download GST invoices from Amazon's Tax Document Library and claim in GSTR-3B.

AD Code is a 14-digit code from your bank. It must be registered on ICEGATE. Without it, shipping bills cannot be generated for your exports.

Download Amazon's Date Range Report and Settlement Report, match sales data with GSTR-1, verify TCS in GSTR-2A, and claim credit in GSTR-3B. Build a monthly reconciliation routine.

Common reasons include shipping bill and GSTR-1 data mismatch, missing e-BRC, or pending deficiency notices. Reconcile ICEGATE and GST data to resolve.

RCMC is not mandatory to export, but it is required to claim benefits under the Foreign Trade Policy. For Amazon Global Selling, RCMC is optional but recommended if you want to access council services and incentives.

GST registration, IEC, LUT, AD Code, DSC, commercial invoices, shipping bills, e-BRC, and Amazon settlement reports. Keep all documents organized for audit.

For GST compliance issues, contact the GST helpdesk at 1800-103-4786. For ICEGATE-related matters, call 1800-3010-1000 or email helpdesk@icegate.gov.in.

10. Related Export Import Compliance Resources

GST for Exporters & Importers GST LUT Filing Guide Export of Goods Under GST Export Import GST Invoicing Export Import GST Return Filing RoDTEP Scheme Claim RCMC Certificate Guide IEC Number Registration AD Code Customs Port Import Export Documentation Amazon TCS Reconciliation Guide Export Starter Package GST Return Filing Services Export Import GST Compliances

Disclaimer: This guide is for general information only and does not constitute legal or professional advice. GST rates, TCS provisions, export incentive rates, and compliance deadlines change from time to time. Please verify all details with the official GST portal, ICEGATE, DGFT, or consult a qualified professional before acting on this information.