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Can I claim input tax credit on ad spend, shipping and software, and how does GST work on COD?

Yes, the 18% GST on Meta/Google ads, courier bills, packaging, Shopify/SaaS subscriptions and gateway fees is input tax credit you offset against the GST you collect on sales, as long as you have a GSTIN and the vendor invoice carries it (foreign platforms like Meta may need reverse-charge handling, flag this to your CA). Recovering that 18% is the single biggest reason most brands register voluntarily. On COD, remember GST falls due at the point of invoice/sale, not when the cash is finally remitted by the courier, so you owe the tax before the money lands, plan cash flow accordingly.

Go deeper

3 resources, 3 India-specific, 3 link-checked.

📄 Article
✓ Link checked India Free Intermediate

For a D2C brand, ad spend is often the biggest cost, this explains the 18% GST on advertising and how to claim it back as input credit, the maths that materially changes your CAC.

GST on Advertising: Rules, Tax Rates & Input Tax Credit

From Razorpay by Razorpay Learn

  • Advertising services attract 18% GST
  • ITC is claimable when spend is for the business
  • Documentation and matching are required to claim
Open razorpay.com
📄 Article
✓ Link checked India Free Beginner

The single best plain-English overview for a D2C founder, it ties together registration, place of supply, invoicing, returns and TCS in one read without drowning you in sections of the Act.

GST on Online Sellers of Amazon, Flipkart and Other Ecommerce

From ClearTax by ClearTax

  • Marketplace sellers must register for GST regardless of turnover
  • GST is destination-based: CGST+SGST intra-state, IGST inter-state
  • The seller, not the platform, issues the tax invoice to the buyer
Open cleartax.in
📄 Article
✓ Link checked India Free Intermediate

A dense, practitioner-written FAQ covering commission handling, invoice generation, ITC and TCS matching, the kind of detail a marketplace seller runs into in month two.

Everything about GST on Online Sellers of Amazon, Flipkart etc.

From TaxAdda by TaxAdda

  • Anyone supplying through an ECO must register regardless of turnover
  • The seller bears GST liability, not the platform
  • Practical guidance on ITC claims and TCS reconciliation
Open taxadda.com

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