GST rates reduction on several items - Guidelines to Amazon Sellers

GST rates reduction on several items - Guidelines to Amazon Sellers

GST council has recommended GST rates reduction on several items which are effective July 27, 2018.

It is important for you to know the process for updating the GST rates (also referred as Product Tax Code – PTC* in your Seller Central Account) applicable for all your orders. The Invoicing feature is enabled in your Seller Central Account.

 Tax will be computed for every order based on the applicable PTC assigned by you in your Seller Central Account.

 In order to get ready for this:

 1. Update your GSTIN, if not already done.

 2.Assign the applicable Product Tax Codes (PTC) for your account, product category, ASIN (as the case may be) from the GST page.

    Product Tax Code: A_GEN_EXEMPT Tax Rate ((IGST or CGST+SGST/UTGST combined): 0%
    Product Tax Code: A_GEN_JEWELLERY Tax Rate ((IGST or CGST+SGST/UTGST combined): 3%
    Product Tax Code: A_GEN_SUPERREDUCED Tax Rate ((IGST or CGST+SGST/UTGST combined): 5%
    Product Tax Code: A_GEN_REDUCED Tax Rate ((IGST or CGST+SGST/UTGST combined): 12%
    Product Tax Code: A_GEN_STANDARD Tax Rate ((IGST or CGST+SGST/UTGST combined): 18%
    Product Tax Code: A_GEN_PEAK Tax Rate ((IGST or CGST+SGST/UTGST combined): 28%
    Product Tax Code: A_GEN_PEAK_CESS@12% Tax Rate ((IGST or CGST+SGST/UTGST combined): 28%+12%
    Product Tax Code: A_GEN_PEAK_CESS@60% Tax Rate ((IGST or CGST+SGST/UTGST combined): 28%+60%

Please note that the tax settings in Seller Central Account will have account level default PTC set at 18%. You can review/update the applicable PTC for your listings anytime in your Seller Central Account.

What is a *Product tax code (PTC)?

PTCs are codes which are mapped to GST rates notified by the government (i.e. the percentage of taxes which are applicable for sale of product or services). Tax calculation system under your Seller Central Account uses the PTC selected by you for your account, product category, ASIN (as the case may be) to calculate tax on the products or services you list on Amazon.in.

What PTC should I select if I sell in multiple categories?

You can set the PTC at the account level if all listings belong to the same tax category. You can also override account level PTC and set ASIN level PTC if you are selling in multiple categories. Please take independent advise from your CA/ tax advisors in this regard.

If you need more info on PTC, please click on this link:

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