Accounting and GST for E-commerce Sellers
Books, GST returns and income tax for sellers on Amazon, Flipkart, Meesho and other marketplaces: registration, GST TCS, income-tax TDS and settlement reconciliation.
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Quick answers
Do I need GST registration to sell on Amazon or Flipkart?
Not always. Since 1 October 2023, a seller of goods who sells within one State only, makes no inter-State supply, stays within the registration threshold and obtains an enrolment number on the GST portal is exempt (Notification 34/2023-Central Tax). A seller who ships to buyers in other States must register regardless of turnover.
What is the GST TCS rate for online sellers?
0.5% of the net value of taxable supplies (0.25% CGST plus 0.25% SGST, or 0.5% IGST) from 10 July 2024. The operator reports it in GSTR-8; the seller accepts the credit on the GST portal and it reaches the electronic cash ledger.
What TDS does the marketplace deduct?
0.1% of the gross amount of sales, from 1 October 2024 (earlier 1% under Section 194-O). From 1 April 2026 the provision is Section 393(1), Table Sl. No. 8(v), of the Income-tax Act, 2025. An individual or HUF seller whose gross sales through the operator do not exceed Rs 5 lakh in the tax year, and who has given PAN or Aadhaar, is outside it.
What our Accounting and GST for E-commerce Sellers service covers
How the engagement works
How to start
You can start by email or WhatsApp; the office reviews the reports before any work begins.
Send these three things first:
- GSTIN or enrolment number, PAN, and the list of platforms you sell on
- Settlement / payment reports and the tax (GST) report from each seller panel for the period
- Bank statement of the account that receives the payouts
What you provide
- Seller-panel reports for every platform, each month
- Purchase bills and stock details
- OTP / approval on your own GST and income tax logins
What the firm does
- Reconciliation of payouts and returns
- Books, GST returns and TCS / TDS matching
- Income tax return after your approval
What happens next: Once the papers are reviewed, the scope of work and the information still needed are confirmed in an engagement letter.
Documents and reports required
- → PAN, GST registration certificate or enrolment number, and Aadhaar of the proprietor or partners
- → Order, return and refund reports from each marketplace
- → Settlement / payment reports and remittance advice for each payout
- → Marketplace tax invoices for commission, fees, advertising and shipping (with your GSTIN)
- → GST tax reports from each seller panel (for GSTR-1)
- → Purchase invoices, stock records and warehouse transfer details
- → Bank statements, and Form 26AS / AIS for the year
For a specific Accounting and GST for E-commerce Sellers matter, you may send the details through the contact form, call +91 88022 54567 or write on WhatsApp (Mon–Sat, 10:00 AM–7:00 PM). Please do not send passwords or OTPs.
GST, TCS, TDS and accounting for online sellers
GST registration for marketplace sellers
Section 24(ix) of the CGST Act requires persons who supply goods or services through an e-commerce operator that collects tax under Section 52 to register, regardless of turnover. Two notifications relax this:
| Seller | Registration | Basis |
|---|---|---|
| Goods, sold within one State only, no inter-State supply, turnover within the threshold | Not required; an enrolment number must be obtained on the GST portal before the first sale | Notification 34/2023-Central Tax, from 1 October 2023 |
| Goods sold to buyers in other States, or through the platform in more than one State | Required from the first sale | Section 24(i) and 24(ix) |
| Services (other than those on which the operator pays tax) | Not required while all-India aggregate turnover is within Rs 20 lakh | Notification 65/2017-Central Tax |
| Services under Section 9(5), such as restaurant and passenger transport services | The operator pays the GST | Section 9(5) |
For a seller of goods in Delhi, the threshold referred to in Notification 34/2023 is Rs 40 lakh of aggregate turnover in both the preceding and the current year (Rs 20 lakh where services are also supplied). The enrolment number lets the seller list on platforms only for buyers in the same State, and it ends when regular registration is granted. A registered seller may opt for the composition scheme and still sell goods through an operator within the State; composition is not available to a person supplying services through an operator that collects TCS.
Registration in each State where stock is held
Registration is State-wise. A “place of business” under Section 2(85) includes a warehouse or godown where goods are stored. Stock placed in a marketplace fulfilment centre in another State is supplied from that State and needs a GSTIN there; a warehouse in a State already registered is added as an additional place of business. Transfers between your own GSTINs in different States are taxable supplies that need a tax invoice, and an e-way bill where applicable.
GST TCS under Section 52 and GSTR-8
- Rate: 0.5% of the net value of taxable supplies (sales less returns) from 10 July 2024, earlier 1% (Notification 15/2024-Central Tax, amending Notification 52/2018-Central Tax).
- Return: the operator files GSTR-8 by the 10th of the following month, showing each seller’s GSTIN, gross supplies, returns and TCS.
- Credit: the seller accepts or rejects each entry under Returns > TDS and TCS credit received on the GST portal. Accepted credit goes to the electronic cash ledger and can pay GST liability.
- Matching: the seller’s GSTR-1 (which has a separate table for supplies through operators) should agree with the operator’s GSTR-8. Differences can lead to a scrutiny notice; see GST notice reply.
Income-tax TDS on e-commerce sales
Section 194-O of the Income-tax Act, 1961 required the operator to deduct TDS on the gross amount of sales facilitated through it; the rate was cut from 1% to 0.1% from 1 October 2024 by the Finance (No. 2) Act, 2024. From 1 April 2026 the same deduction is in Section 393(1), Table Sl. No. 8(v) of the Income-tax Act, 2025, at 0.1% of the gross amount. Under Section 393(4), Table Sl. No. 11, no deduction is made for an individual or HUF whose gross sales through the operator do not exceed Rs 5 lakh in the tax year, provided PAN or Aadhaar has been given. Tax deducted under this entry is not deducted again on the same transaction under another TDS provision. The TDS appears in Form 26AS and AIS and is claimed in the return; without PAN the rate is 5%.
Settlement reconciliation
A marketplace pays a net amount, often weekly. Each payout has to be broken down before it can be booked:
| Item in the settlement | Accounting treatment |
|---|---|
| Order value (including GST) | Sales and output GST, matched to the order and tax reports |
| Customer returns and refunds | Sales returns with credit notes; returned stock back into inventory or written off if damaged |
| Commission, closing and fixed fees | Expense; GST on the platform’s invoice is input tax credit if your GSTIN is on it and it appears in GSTR-2B |
| Shipping, pick-and-pack and storage fees | Expense, with input tax credit as above |
| Advertising (sponsored listings) | Expense, invoiced separately in many cases; sometimes recovered from the payout |
| GST TCS and income-tax TDS | Receivables: TCS to the GST cash ledger, TDS to the income tax return |
| Claims and reimbursements for lost or damaged goods | Other income or reduction of loss, matched to the stock written off |
Sales less returns, fees, TCS and TDS, adjusted for amounts the platform holds back, should equal the money received in the bank. A gap usually means an unbooked return, fee invoice or reserve.
Books and inventory
Keep a ledger for each platform that clears on every payout, and stock records by location, including platform warehouses. The seller-panel tax report feeds GSTR-1, but check it against the order report each month, since cancellations and returns change it. Purchase invoices and stock records support the cost of goods sold.
Income tax return and presumptive taxation
A resident individual, HUF or partnership firm (not an LLP) can declare income under the presumptive scheme in Section 44AD (Section 58 of the Income-tax Act, 2025 from Tax Year 2026-27): 8% of turnover, or 6% of the part received through banking or prescribed electronic modes. The limit is Rs 2 crore, or Rs 3 crore where cash receipts are within 5% of the total. Whether cash-on-delivery orders count as the seller’s cash receipts depends on the facts. The return is ITR-4 (Sugam) if the other conditions are met, otherwise ITR-3 (individuals) or ITR-5 (firms). Declaring lower income than the presumptive rate, or exceeding the limits, can bring books of account and a tax audit. The presumptive tax calculator shows the figures.
For Delhi registrations, see GST registration in Delhi; for monthly filing, GST return filing; and for bookkeeping across channels, accounting and payroll.
Official sources
- Notification 34/2023-Central Tax (sellers of goods through operators, enrolment number)
- Notification 15/2024-Central Tax (TCS rate, amending Notification 52/2018-Central Tax)
- CBIC FAQs on e-commerce under GST (Section 52, GSTR-8, credit in the cash ledger)
- CBIC FAQs on TCS, updated 30 November 2018 (Notification 65/2017-Central Tax: service suppliers through operators)
- Finance (No. 2) Act, 2024 (Section 194-O rate 0.1% from 1 October 2024)
- Income-tax Act, 2025, Section 393 (Table Sl. No. 8(v) and Section 393(4) Sl. No. 11) and Section 58 (incometaxindia.gov.in)
Common mistakes
- Selling inter-State on an enrolment number. The enrolment route covers sales within one State only; shipping outside it needs registration first.
- Booking the payout as sales. Net payouts hide commission, returns, TCS and TDS; sales are under-reported and fees and credits are lost.
- Ignoring stock in other States. Stock at a fulfilment centre in another State needs a GSTIN or place of business there.
- Missing ITC on platform invoices. Commission, shipping and advertising invoices carry GST that is creditable only if they show your GSTIN and appear in GSTR-2B.
- GSTR-1 not matched with GSTR-8. Differences between your sales and the operator’s return are a common cause of scrutiny notices.
Accounting and GST for E-commerce Sellers for clients in New Delhi & Delhi NCR
SKAG and Associates is a firm of Chartered Accountants based at Kh.No-84, Plot No -RZ-I-1, F/Floor, 12/2, Main Rd, opposite Yammaha Showroom, Mahavir Enclave, New Delhi – 110045. The firm handles Accounting and GST for E-commerce Sellers work and allied compliance for individuals, professionals, firms and companies across New Delhi, South West Delhi and the wider Delhi NCR region, as well as clients elsewhere in India who engage it remotely.
Engagements are conducted strictly in accordance with the Chartered Accountants Act, 1949 and the ICAI Code of Ethics. To discuss your requirement, you are welcome to contact the office or call +91 88022 54567 during working hours (Mon–Sat, 10:00 AM–7:00 PM).
Frequently asked questions
What is an enrolment number for e-commerce sellers? +
It is a number issued on the GST portal, after PAN validation, to a seller of goods who is exempt from registration under Notification 34/2023-Central Tax. The seller declares PAN, place of business and the State of supply. Only one enrolment number is given per State, sales must stay within that State, and it ceases once regular registration is granted.
How do I claim the GST TCS deducted by Amazon or Flipkart? +
After the operator files GSTR-8, the entries appear under Returns > TDS and TCS credit received on the GST portal. Accept the correct entries and file the statement; the credit then moves to the electronic cash ledger and can be used to pay GST.
Is TDS deducted on the full sale value or on the payout? +
On the gross amount of the sale of goods or services facilitated by the operator, at 0.1%, not on the net payout. Amounts the operator receives for advertising or other services not connected with the sale are outside this entry.
Can a composition dealer sell on Amazon or Flipkart? +
Yes, for goods, from 1 October 2023, but only within the State, since a composition taxpayer cannot make inter-State supplies. A person supplying services through an operator that collects TCS cannot opt for composition.
Do I need GST registration in every State where Amazon stores my goods? +
Generally yes. A warehouse where your goods are stored is a place of business, and registration is State-wise, so stock held in a fulfilment centre in another State needs a GSTIN in that State.
Questions about Accounting and GST for E-commerce Sellers?
You may contact CA Gaurav Singh to discuss your specific facts and requirements.
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