What is Bussiness Purchases on Amazon?

What is Bussiness Purchases on Amazon?

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Deal Cadet
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when i looked at offers section of any amazon product i am seeing this offer everytime:-

Partner Offers: Get GST invoice and save up to 28% on business purchases.

what is bussiness purchases? it means can i buy products for re-selling purpose?

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8 Dimers
Missing
Deal Legend
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All you need to know is here:
https://www.amazon.in/b2b/info/amazon-business?...

The savings are because of GST input credit

Warning:
Do not create a fake business account. Big trouble awaits you if you do so. Only use a business account if you have an actual registered business.

Some good things about a business a/c on Amazon
1) You get GST bills for some items so you can claim a refund from the tax department
2) You get additional discounts not available to individual users e.g. 10% extra off on computer purchases (available now) or 10% extra on weekly essentials (Pantry, paper & other consumables available 2-3 months ago)
3) The quantity restrictions applicable to individual users do not apply to you
4) Volume discounts are available
5) You can have things like P.O. numbers
6) You can assign roles to users using the account
7) You can generate spending reports and export them

Drawbacks
1) Sometimes a coupon is applicable only for individual users and not business users
2) It does not as yet support transaction workflow for payments wherein one user initiates a payment from a company bank account and another user approves that payment

Missing
Deal Cadet
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Can we claim input tax credit even for items which will be used as consumables?

E.g., I have an IT company. Can I claim input tax credit for stuff I order from pantry or stationary for employee consumption?

Extending my query, can I make all Amazon purchases (including my personal purchases) from my business account and use the tax credit to offset my tax payout?

Baba ji
Deal Lieutenant
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iHuntDeals wrote:

All you need to know is here:
https://www.amazon.in/b2b/info/amazon-business?...

The savings are because of GST input credit

Warning:
Do not create a fake business account. Big trouble awaits you if you do so. Only use a business account if you have an actual registered business.

Some good things about a business a/c on Amazon
1) You get GST bills for some items so you can claim a refund from the tax department
2) You get additional discounts not available to individual users e.g. 10% extra off on computer purchases (available now) or 10% extra on weekly essentials (Pantry, paper & other consumables available 2-3 months ago)
3) The quantity restrictions applicable to individual users do not apply to you
4) Volume discounts are available
5) You can have things like P.O. numbers
6) You can assign roles to users using the account
7) You can generate spending reports and export them

Drawbacks
1) Sometimes a coupon is applicable only for individual users and not business users
2) It does not as yet support transaction workflow for payments wherein one user initiates a payment from a company bank account and another user approves that payment

+
Mobile exchange does not work under business accounts/shopping.

Missing
Deal Cadet
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iHuntDeals wrote:

All you need to know is here:
https://www.amazon.in/b2b/info/amazon-business?...

The savings are because of GST input credit

Warning:
Do not create a fake business account. Big trouble awaits you if you do so. Only use a business account if you have an actual registered business.

Some good things about a business a/c on Amazon
1) You get GST bills for some items so you can claim a refund from the tax department
2) You get additional discounts not available to individual users e.g. 10% extra off on computer purchases (available now) or 10% extra on weekly essentials (Pantry, paper & other consumables available 2-3 months ago)
3) The quantity restrictions applicable to individual users do not apply to you
4) Volume discounts are available
5) You can have things like P.O. numbers
6) You can assign roles to users using the account
7) You can generate spending reports and export them

Drawbacks
1) Sometimes a coupon is applicable only for individual users and not business users
2) It does not as yet support transaction workflow for payments wherein one user initiates a payment from a company bank account and another user approves that payment

My friend have a registered business and gst number. Can he buy iPhone xr and claim a refund from the tax department?

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Deal Subedar
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jasmin5967 wrote:

My friend have a registered business and gst number. Can he buy iPhone xr and claim a refund from the tax department?

Yep, he can but the thing is most of the premium phone brands does not have GST invoice.

Have been using Business account for past year and have purchased expensive items including laptop/printer/AC/HDD and easily saved 50k+ with highest saving in AC with 28% (I think GST has now been reduced to 18% in AC)

As far as pantry is concerned, they do not have GST invoice and hence cannot be claimed. However, have been regularly buying premix coffee/tea for vending machine and claiming GST credit.

Edit: Just checked- no GST credit for iphone xr but is available for oneplus (4k for 7 & 6k for 7+) but as someone mentioned, big disadvantage is no exchange in business account

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jasmin5967 wrote:

My friend have a registered business and gst number. Can he buy iPhone xr and claim a refund from the tax department?

GST credit not available on iPhone XR

Quote i have failed at times but i never stopped trying rahul dravid 92 90 95
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cashif wrote:

Yep, he can but the thing is most of the premium phone brands does not have GST invoice.

Have been using Business account for past year and have purchased expensive items including laptop/printer/AC/HDD and easily saved 50k+ with highest saving in AC with 28% (I think GST has now been reduced to 18% in AC)

As far as pantry is concerned, they do not have GST invoice and hence cannot be claimed. However, have been regularly buying premix coffee/tea for vending machine and claiming GST credit.

Edit: Just checked- no GST credit for iphone xr but is available for oneplus (4k for 7 & 6k for 7+) but as someone mentioned, big disadvantage is no exchange in business account

GST Credit cannot be availed on Food Items

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GoogleCA wrote:

GST Credit cannot be availed on Food Items

Am using vending machine in office and coffee/tea powder is for the same. Have been claiming for the past year.

A doubt seeing you have CA affixed to your name, Pls clarify- If it cannot be availed why is Amazon selling with GST Invoice (I have created a condition in Business account to list only those with GST invoice).

I know Google is not reliable but first search in google regarding food item-
Yes, ITC can be claimed against staff welfare, on buying coffee, provided the tax invoice raised by the seller of coffee powder shall mention his as well as receiver’s GSTIN.

Quote i have failed at times but i never stopped trying rahul dravid 92 90 95
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cashif wrote:

Am using vending machine in office and coffee/tea powder is for the same. Have been claiming for the past year.

A doubt seeing you have CA affixed to your name, Pls clarify- If it cannot be availed why is Amazon selling with GST Invoice (I have created a condition in Business account to list only those with GST invoice).

I know Google is not reliable but first search in google regarding food item-
Yes, ITC can be claimed against staff welfare, on buying coffee, provided the tax invoice raised by the seller of coffee powder shall mention his as well as receiver’s GSTIN.

https://cleartax.in/s/gst-cases-where-input-tax...

Clause b(i) of Section 17(5) of CGST Act, 2017
https://www.taxmann.com/blogpost/2000001814/sec...

It’s clearly written in the act that ITC is allowed only if you are in the same line of service. For others ITC is not allowed.

On your point why Amazon is selling with GST Invoice:
1. It’s nowhere written that if ITC cannot be availed on an item then the seller need not issue an tax invoice. Infact that would lead to black marketing and corruption.
2. How does Amazon know if you are buying goods for consumption or you are in the catering line? They are not bound to know this before selling you goods
3. ITC Credit is not allowed on Motor Vehicles like cars unless you are in the business of leasing cars or giving them on rent but when you buy a car, the dealer gives you a tax invoice, why?

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Thanks for heads-up; will re-check with our Auditors and to be on safer side, avoid it temporarily as am availing GST credit of hardly 1.2k bucks every month

Edit: About vehicles, i already experienced as Auditor informed me to not claim credit.

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cashif wrote:

Yep, he can but the thing is most of the premium phone brands does not have GST invoice.

Have been using Business account for past year and have purchased expensive items including laptop/printer/AC/HDD and easily saved 50k+ with highest saving in AC with 28% (I think GST has now been reduced to 18% in AC)

As far as pantry is concerned, they do not have GST invoice and hence cannot be claimed. However, have been regularly buying premix coffee/tea for vending machine and claiming GST credit.

Edit: Just checked- no GST credit for iphone xr but is available for oneplus (4k for 7 & 6k for 7+) but as someone mentioned, big disadvantage is no exchange in business account

Thank you for providing information. Kg plus1

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