Tax Help for AWS Marketplace Sellers

If you are an India incorporated Seller and selling to an Indian buyer, Amazon Web Services India Private Limited (‘AWS India’) will be the Marketplace Operator and the requirements below will be applicable.

To register as a seller on AWS India Marketplace, the Seller must create an AWS Account as a Seller and must complete the steps below and provide the required information.

Indian incorporated Seller would mean any entity having a legal address and Goods and Service Tax (GST) registration in India. 

Mandatory Registration

Regardless of Turnover, a Seller must:

• Obtain Goods and Services Tax (GST) Registration
• Enable E-invoicing for their GST Identification Number (GSTIN). If Seller is in a Special Economic Zone (SEZ), no such enablement is required.
   

Documents and Information Requirements

For Seller account creation, following information, declarations and authorizations, as detailed below is required to be provided:

a) Business Information

• Legal name, trade name and principal place of business as per GST registration certificate
• GSTIN corresponding to legal address listed in their AWS profile
• Valid Permanent Account Number(‘PAN’). PAN details will be auto populated from GSTIN.

This information should be provided on the Tax Settings Page of AWS account. In case of any changes, Seller must update it on Tax Settings Page.

b) Declarations and Authorizations

A seller will be prompted to agree to the below at the time of onboarding:

• AWS uses the tax registration information that Seller provides in the AWS Marketplace Management Portal (AMMP) to generate tax invoices and e-invoices for AWS Marketplace transactions. 
• The seller shall confirm that its GST ID supports e-invoicing. 
• For transactions with Special Economic Zone (SEZ) units, Seller will provide the Letter of Undertaking (LUT) details, including the Application Reference Number (ARN) copy, for each financial year when requested. 
• Seller will not apply any Tax Deduction at Source (TDS) to the AWS Marketplace listing fee.

c) Signature Requirements

Seller will be required to provide specimen signature of authorized person, to be affixed on invoices for marketplace sales, for which a link to SIM ticket will be provided at the time of onboarding.

For all the sales made on AWS India marketplace as a seller or reseller, AWS India will facilitate the issuance and collection of invoices. Invoices will display your details (as available in your Tax settings page) as a seller.

It is therefore Seller’s responsibility to ensure that:

• Details provided on tax settings page are accurate
• Sellers report these tax invoices in their GST returns and remit applicable GST to the Government within prescribed time.

The other key aspects around invoicing are set out below. 

Type of invoices

The type of invoices will depend on whether Seller is registered as a regular taxpayer or as an SEZ seller under the GST laws.

a) If registered as regular seller (non-SEZ): AWS India will facilitate issuance of Tax invoice (e-invoice for GST registered buyers) with applicable GST. Where buyer is in SEZ, no GST will be charged.

b) If registered as an SEZ seller: AWS India will facilitate issuance of Tax invoice (and not an e-invoice) with applicable GST. Where buyer is in SEZ, no GST will be charged.

In addition to above, AWS India will also provide a Commercial Invoice/statement to the Buyer.

Invoice delivery

Sellers will receive tax invoices/ e-invoices via email within two weeks of the invoice date.  

AWS India, as Marketplace Operator, will collect payment from buyers (including applicable taxes) and remit it to the Sellers after following deductions:

• GST Tax Collected at Source (GST-TCS) - 0.5% of Transaction value;
• Withholding Tax (WHT) under section 194O - 0.1% of Transaction value;
• Listing fee plus applicable GST
  

Notes:

1. Transaction value (TV): Amount payable by buyer, excluding the GST amount, returns & discounts
2. Sellers can claim credit of GST-TCS and WHT in your tax filings, if eligible.

• AWS India will issue an e-invoice with applicable GST to the ISV’s. Where ISV is in SEZ, no GST will be charged.
• AWS India will deduct the amount of listing fees (plus applicable GST) while remitting the amount to ISV.
• ISV’s should not undertake any WHT on listing fees.

Seller's Responsibilities

All tax compliances (both under GST and Income-tax) will be Seller’s responsibility, and AWS India will not undertake any tax compliance obligation on your behalf. Accordingly, Seller must ensure tax compliance for marketplace sales, including but not limited to:

• Reporting of tax invoices in your GST returns
• Remitting applicable GST
• Proper disclosure of income in income tax returns and related filings

• Transaction level details (including tax details) – This will be made available on AWS Console, and Sellers can log in and directly download the same
• Quarterly WHT certificates; and
• Deposit of GST-TCS amounts in Seller’s name on GSTN portal

AWS India ticket system

In case of any discrepancies or queries related to transactions (like mismatch of GST – TCS / WHT, incorrect details on invoices raised by AWS India, credit of GST on listing fee, etc.), please raise a ticket with AWS India for resolution.

Frequently asked questions (FAQs)

For more detailed tax information, refer to the FAQs.