eShopbox Partner Care

All the sales tax liability on eshopbox on account of selling brand products on any online channel is recovered via Reimbursement of sales tax. 

Calculation of sales tax for various cases is explained below : 

Case 1 : If goods are sold on B2C channel

In case of B2C channel,

• Eshopbox invoices goods to customers. 
• Channel raises invoice to eshopbox for all the channel fees (commission fees, shipping fee, fixed fee etc)
  
  Input tax credits for GST charged by channel over its fees is passed on to Brands while calculating reimbursement of sales tax. 

Reimbursement of sales tax = GST on goods sold to customer -  GST charged by channel over its fees

Table 1 : Calculation of reimbursement of sales tax in case of B2C channel :

Case 2 : If goods are sold on B2B channel :

In case of B2B channel, 

• Eshopbox invoice goods to channels. 
• Channel will raise invoice to customer.

As channel doesn't raise any invoice to eshopbox, there are no Input tax credits available. Therefore, 

Reimbursement of sales tax = GST on value sold to customer

Also note that B2B channels like Jabong, Myntra, channel margins are net of taxes - meaning Base purchase value by channel = SRP(A) - GST on sales(B) - Channel Margin(C)

Table 2 : Calculation of reimbursement of sales tax in case of B2B channel :

Please note that this fees will be reversed back if the orders is returned.