Overview

Amazon began collecting India's Goods and Services Tax (GST) on advertising fees charged to India-based advertisers starting July 1, 2020. This applies to sellers, vendors, and authors running Sponsored Products, Sponsored Brands, and Sponsored Display campaigns on amazon.com who have not provided a valid GST registration number in their advertising account. Understanding how this tax applies and how to update your information can help you avoid unnecessary charges or secure refunds for GST collected in error.

Key Points / What Sellers Need to Know

• GST applies to India-based advertisers without a valid GST ID — Amazon is required under Indian tax rules to collect and remit GST on remote services, also known as Electronically Supplied Services (ESS), provided to residents of ESS countries like India.
• Each advertising account requires a separate GST ID entry — For security purposes, your GST registration number does not automatically carry over between separate advertising accounts. You must update each account individually.
• GST is calculated at the time of invoice issuance — Amazon determines whether GST should be collected based on the information in your account when the invoice is generated, not when services were rendered.
• Refunds are available but take 30-60 days — If you were charged GST in error, you can request a refund by contacting Amazon and providing your valid GST registration number along with a registration certificate covering the period in question.
• Both individuals and businesses are affected — Whether you operate as an individual seller or a registered business, Amazon will charge GST on advertising fees unless a valid GST ID is on file.

How to Add Your GST Registration Number

To stop Amazon from charging GST on your advertising fees, you need to provide your 15-digit GST registration number directly in your advertising account settings. Navigate to the VAT Information section within your account settings in Seller Central or the advertising console UI. Select India from the list of countries, enter your GST ID, and accept the conditions in the registration agreement. If you experience difficulty updating through the portal, you can also email Amazon a copy of your VAT/GST registration certificate along with confirmation of the effective date. Sellers who do not yet have a GST registration number should consult their tax advisor or visit the Indian tax authority's website to begin the registration process.