GST for Export Sellers on Amazon – LUT, Refund & Zero‑Rated Supply Guide

What is Amazon Global Selling and Export 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), and many others. It is a complete export‑facilitation service where Amazon handles international logistics, payments, and customer service on your behalf. As a seller, you ship your goods to Amazon's fulfillment centres in India or directly to the destination country, and Amazon takes care of the rest.

From a GST perspective, every sale made to a customer outside India is an export of goods. Exports are treated as zero‑rated supplies under the IGST Act. This means you do not charge any GST to the foreign buyer. However, you still need to comply with GST regulations in India – including registration, LUT filing, shipping bill matching, and return filing – to legitimately claim the export benefits. DisyTax has assisted over 1,000 Amazon export sellers with end‑to‑end GST and export compliance. Start with our GST basic terms if you're new to export taxation.

Is GST Mandatory for Export Sellers on Amazon?

Yes, GST registration is mandatory for anyone exporting goods through Amazon Global Selling, irrespective of their domestic turnover. Here's why:

• Zero‑Rated Supply: To export under LUT or claim an IGST refund, you must be a registered GST taxpayer.
• Section 24: If you are selling through an e‑commerce operator (Amazon) for export, you may be classified as an e‑commerce seller, triggering mandatory registration even if your aggregate turnover is below ₹40 lakh.
• IEC Requirement: An Import Export Code (IEC) is mandatory for exports. Although IEC registration is separate from GST, the two are linked – you need a valid GSTIN to utilise LUT or claim export refunds.
• Amazon Policy: Amazon requires you to provide GSTIN in your seller account for Global Selling.

Even if you are a small‑scale manufacturer exporting occasionally, it is strongly advisable to obtain GST registration. This unlocks input tax credit on your purchases and expenses, and makes the export process smoother. Read our guide on GST registration threshold limits for more context.

GST Registration Requirements for Amazon Export Sellers

To register for GST as an exporter, you need the following:

• PAN: Permanent Account Number of the business or individual.
• Aadhaar: For identity verification.
• Business Address Proof: Electricity bill, rent agreement, or property tax receipt.
• Bank Account Proof: Cancelled cheque or bank statement.
• IEC (Import Export Code): Issued by DGFT. If you don't have one, apply simultaneously.
• Photograph: Passport‑size photograph of the proprietor/partners/directors.

Once you have the documents, apply on the GST portal using Form GST REG‑01. Select “Taxpayer” as the registration type. In Part‑B, mention your business details and select HSN codes for the goods you plan to export. The approval process takes about 7 working days. DisyTax provides end‑to‑end registration and IEC assistance.

Export of Goods Under GST: Basic Concepts

Under the IGST Act, “export of goods” means taking goods out of India to a place outside India. Two key principles govern exports:

• Zero‑Rated Supply: Exports are zero‑rated, meaning you charge 0% GST to the foreign buyer. However, you are eligible to claim a refund of the input tax credit that was paid on the inputs, input services, and capital goods used to make the exported products.
• Two Options for Exporters:
  – Export under LUT (Letter of Undertaking) without paying IGST, and later claim a refund of accumulated ITC.
  – Export with payment of IGST at the applicable rate (even though the sale is zero‑rated, you can pay IGST voluntarily) and then claim a refund of the IGST paid.

Most Amazon sellers prefer the LUT route because it doesn't block working capital. The GST portal provides a seamless mechanism for refund processing. For a deeper understanding, see our detailed guide on exports under GST.

Why Export Sales Are Treated as Zero‑Rated Supplies

Zero‑rating is a foundational concept of GST. It ensures that exported goods leave the country without any embedded taxes, making them competitive in international markets. Unlike exempt supplies (where ITC is blocked), zero‑rated supplies allow the exporter to claim a refund of all input tax credits related to the export. This is in line with the destination‑based principle of GST – the tax revenue should accrue to the country where the goods are consumed, not the country of origin. Thus, India refunds the ITC to the exporter, effectively zero‑rating the entire supply chain for exports.

LUT vs IGST Payment for Amazon Export Sellers

We recommend the LUT route for Amazon Global Selling because it preserves cash flow and is a one‑time annual filing. DisyTax can help you file your LUT in under 24 hours.

How to File LUT for Amazon Export Business

Filing an LUT is a simple online process on the GST portal:

1. Login to GST Portal – Use your GSTIN and password.
2. Navigate to LUT Filing – Go to Services > User Services > Furnish Letter of Undertaking (LUT).
3. Select Financial Year – Choose the current financial year (e.g., 2026‑27).
4. Fill the Declaration – Confirm that you have not been prosecuted for any offence under the CGST Act and that you will comply with all export obligations.
5. Sign and Submit – Use DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) to sign the LUT.
6. Download ARN – Once submitted, you will receive an Application Reference Number (ARN). The LUT is effective immediately.

The LUT is valid for the entire financial year. You must file a fresh LUT before 31st March each year. There is no fee for filing LUT. Refer to our step‑by‑step LUT/Bond guide for screenshots and detailed instructions.

GST Invoice Requirements for Export Sales

When you export goods through Amazon, you must issue an export invoice that complies with GST rules. The export invoice must contain:

• Invoice number and date
• Exporter's name, address, and GSTIN
• Buyer's name and address (foreign entity)
• Description of goods, HSN code, quantity, and value in foreign currency
• Shipping bill number and date (can be added later if not available at the time of invoicing)
• Declaration: “Supply meant for export on payment of IGST” or “Supply meant for export under LUT without payment of IGST”
• Country of destination

Even though the tax rate is effectively zero, the invoice must clearly indicate that it is an export invoice. For a ready‑to‑use template, see our GST invoice format.

Shipping Bill and Export Documentation Requirements

The shipping bill is the most critical document for GST compliance on exports. It is filed with Customs at the port of export and contains details of the goods, exporter, and destination. Here’s what you must ensure:

• The shipping bill must reference your GSTIN and export invoice number.
• If you are exporting under LUT, the shipping bill must be marked accordingly (“Without payment of IGST under LUT”).
• If you are paying IGST, the shipping bill must show the IGST amount and the IGST challan details.
• After the goods have been exported, the shipping bill data is transmitted from Customs to the GST portal. This data is used to validate your refund claim.

Amazon Global Selling often handles logistics through Amazon's partnered carriers. They may provide a consolidated shipping bill or a courier bill for small parcels. Ensure you download these documents from your seller central account and reconcile them with your GST returns. For a complete guide, refer to our shipping bill guide.

GST Refund Process for Amazon Export Sellers

Exporters can claim two types of refunds: refund of IGST paid on export (if opted) and refund of accumulated ITC (under LUT). The process differs:

Refund of IGST Paid on Export

This is largely automatic. Once the shipping bill is filed and the export general manifest (EGM) is generated, the IGST paid is refunded to your bank account within a few weeks. The system matches your GSTR‑1 (where you report export invoices) with the shipping bill. Mismatches cause delays, so accurate filing is crucial.

Refund of Accumulated ITC (LUT Route)

You must file Form GST RFD‑01 on the GST portal. This application requires you to detail the input tax credit that has accumulated due to zero‑rated supplies. You must also upload invoices and shipping bills. The refund is processed after verification. The time limit for filing refund is two years from the relevant date. Our team can handle the entire refund filing for you. See Form GST RFD‑01 refund guide.

Input Tax Credit (ITC) Benefits on Export Sales

One of the biggest advantages of being a GST‑registered exporter is the ability to claim input tax credit. Since exports are zero‑rated, you don't collect any tax from your foreign customer, but you can still claim a refund of all the GST you paid on your business inputs. This includes:

• Raw materials and components used to manufacture the exported goods.
• Packaging materials.
• Amazon global selling fees – subscription, referral fees, and advertising charges (18% GST).
• Freight and logistics charges up to the port of export.
• Capital goods (machinery, equipment) used for export production.

The accumulated ITC can be claimed as a refund through Form GST RFD‑01. This significantly reduces your effective cost of goods sold and improves profitability. Learn more about ITC under GST and conditions to claim ITC.

GST Return Filing for Amazon Export Sellers

As an exporter, you are required to file the same regular returns as any other taxpayer, but with additional export‑related details:

• GSTR‑1: Report all export invoices in Table 6A (exports) along with shipping bill numbers. This is critical for refund processing.
• GSTR‑3B: Summary return where you report total turnover, ITC claimed, and net tax payable. Export turnover is reported as zero‑rated supply.
• GSTR‑9: Annual return that consolidates all export and domestic data.
• GSTR‑2A: Auto‑populated from your suppliers' GSTR‑1; use it to verify ITC credits.

Timely and accurate filing is essential because refunds are linked to GSTR‑1 data. Any discrepancy between invoice details, shipping bill, and GSTR‑1 can lead to refund rejection. Our GST return filing services are specially designed for Amazon export sellers.

GSTR-1 Reporting of Export Transactions

In GSTR‑1, you must meticulously report each export invoice. The key fields include:

• Invoice number and date
• Port code and shipping bill number (if available; if not, update later)
• Invoice value in foreign currency and INR equivalent
• Taxable value and GST rate (0% for zero‑rated)
• Whether the export is under LUT or with IGST payment

For Amazon Global Selling, you may have numerous small‑value transactions. Use a robust accounting system to consolidate data and ensure no invoice is missed. Reconciliation with Amazon settlement reports is critical. DisyTax provides automated reconciliation to minimise errors.

GSTR-3B Compliance for Export Businesses

While GSTR‑1 captures the detailed outward supplies, GSTR‑3B is a summary return where you declare your total turnover, ITC availed, and net tax liability. For export‑only sellers, the GSTR‑3B will typically show:

• Zero‑rated supplies (exports) under Table 3.1(b).
• ITC claimed under Table 4 – this should match the eligible ITC on inputs, input services, and capital goods.
• Net tax payable is usually nil or a nominal amount if you also have domestic sales.

If you have paid IGST on exports, that amount is reflected in your cash ledger and is adjusted against liability or claimed as refund. Ensure that the ITC claimed in GSTR‑3B does not exceed the available credit in GSTR‑2A.

Foreign Currency Payments and GST Implications

Amazon settles your export sales in foreign currency (USD, GBP, EUR, etc.) directly to your bank account. From a GST perspective:

• The transaction value for GST purposes must be converted to INR using the customs exchange rate applicable on the date of supply (generally the date of invoice).
• You must report this INR value in your GST returns.
• Any forex gain or loss due to exchange rate fluctuation is treated as a financial gain/loss and is not subject to GST (as it is not a supply of goods or services).

Keep a clear record of the exchange rates used for each invoice. This is important during audit and refund verification.

Amazon Global Selling Fees and GST Treatment

Amazon charges various fees for its Global Selling program, including subscription fees, referral fees, and fulfilment fees (if using FBA). All these fees attract 18% GST. Because these fees are business expenses related to your export supplies, you can claim full input tax credit on them. Important points:

• Download monthly GST invoices from your Amazon Seller Central account (Reports > Tax Document Library).
• Ensure the invoice is in your name and reflects your GSTIN.
• Record these expenses as input services and claim ITC in GSTR‑3B.
• If you are exporting under LUT and claiming a refund of accumulated ITC, these Amazon fees contribute to your refundable credit.

Our team can help you set up automated invoice downloads and ITC reconciliation for Amazon fees.

Common GST Mistakes Made by Amazon Export Sellers

GST Compliance Checklist for Export Sellers

• ✅ Obtain GST registration and IEC before starting exports.
• ✅ File LUT for the current financial year before the first export.
• ✅ Issue export invoices with all mandatory fields.
• ✅ Accurately report export invoices in GSTR‑1 with shipping bill details.
• ✅ Reconcile Amazon settlement reports, shipping bills, and GST returns monthly.
• ✅ File GSTR‑3B on time and claim eligible ITC.
• ✅ File refund application (GST RFD‑01) for accumulated ITC, if applicable.
• ✅ Maintain proper records of all export documentation for at least 72 months.
• ✅ Update IEC and LUT annually.
• ✅ Monitor refund status and respond to any deficiency notices promptly.

Benefits of Exporting Through Amazon Global Selling

Frequently Asked Questions (FAQs) on GST for Export Sellers on Amazon

📚 Essential GST Resources for Amazon Export Sellers