eShopbox Partner Care

This guide will give you outline of accounting methodology to be followed in case of brands working on billing model. This will be done by explaining the accounting impact of following events :

• Supply of Goods to eshopbox warehouse
• Monthly settlement and payment
• Return of goods to Brand 

1. Supply of goods to eshopbox warehouse :

Goods are invoiced to eshopbox while they are being supplied to eshopbox warehouse. The billing value of goods of this invoice is determined using methodology outlined in below table for apparels category. 

You can read more about billing value calculation here : Billing value calculation 

Please note :

• Even though goods are invoiced to eshopbox, payment for this goods are due only when the are sold. Payment due date is based on actual sales in the previous calendar month.  

• The invoice raised should comply with the GST invoice guidelines.  The GSTIN number, billing address and shipping address will be mentioned on the PO/Consignment Reference number

• Brand should include this invoice in the GSTR-1 returns filed for the month of supply. The GST deposited by brand will either be 

  • Added back in the monthly payment made to brand corresponding to sales of previous calendar month (POINT 2)

  • input GST credit in case brand decides to recall the unsold inventory.  (POINT 3)

2. Calculation of settlement value and payment :

Payment is made for net goods sold (shipped - returned) in the previous calendar month. The settlement value for a particular sale is determined using the below formula and explained in the table below : 

Settlement value = order item value - channel fees - reimbursement of sales tax - eshopbox fees + input GST credit.

• Please note fees (channel or eshopbox) mentioned in the above table is for explanatory purpose.  You can find details on how channel fees and eshopbox fees in the corresponding section. 

• Kindly notice the input gst credits (highlighted in yellow) received by eshopbox at the time of supplying the goods are added back in the settlement value. 

• Also input credits of GST charged by channels over channel fees will be passed on to brands while calculating reimbursement of taxes in an B2C channel like Flipkart, Amazon etc. 

• Difference in billing value and settlement value will be adjusted by brand issuing eshopbox a corresponding credit note / debit note. This is done only to square of the accounts and no reversal / addition of GST is done corresponding to this credit note / debit note. This is because this adjustment is corresponding to discounts and fees not known at the time of supply and can’t be traced back to relevant tax invoice.( Read more at https://cleartax.in/s/valuation-supply-gst-discount)

3.  Return of inventory to brand :

This is event in case there is inventory is removed from eshopbox warehouse and supplied back to Brand. This can happen for various reasons - goods remain unsold, some pieces were rejected at the time Quality check during inbound,  goods returns by customer and which needs refurbishment etc. 

• Return of inventory to brand will be treated as deemed supply from eshopbox to brand. eShopbox will have to raise invoice to brand in accordance with the billing value calculation agreed in point 1 (supply of goods)

• Eshopbox will include this return of goods in its GSTR-1 returns and will deposit GST for same. This will appear in Brand’s GSTR-2 return form and brand will be able to claim the input tax credits. 

The above methodology is summarised in below table :