GST for E-commerce Sellers (2026): TCS at 0.5%, GSTR-8, Registration & Claiming Your Credit

Track every marketplace settlement in one place

Selling across Amazon, Flipkart and your own store means invoices and settlements scattered everywhere. GST Bill Maker lets you raise compliant GST invoices and track receivables per buyer, so your books match the marketplace reports at reconciliation time. Browse the Knowledge Center for more GST guides for online sellers.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Q: The TCS credit isn’t showing in my ledger. What now? A: Check that your GSTIN on the marketplace is correct and that the operator has filed GSTR-8 for the period. The credit is auto-populated only once their return is filed.

Track every marketplace settlement in one place

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Q: I only sell a few thousand rupees a month on Meesho. Do I really need to register? A: Yes, if you’re selling goods. The turnover threshold doesn’t apply to marketplace goods sellers — registration is compulsory from the first sale.

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Once the operator files GSTR-8, the TCS is auto-credited to your electronic cash ledger — you no longer file a separate “TDS/TCS credit received” return for it as was once required. But you must still reconcile: check that the TCS shown against your GSTIN matches your own record of net sales through that platform. If the operator under-reports (wrong GSTIN, missed returns), the credit simply won’t appear, and you’ll be paying tax you’ve effectively already deposited. Reconcile every month, before you file GSTR-3B.

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

There is one relief on the services side: suppliers of services through an e-commerce operator are exempt from compulsory registration if their aggregate turnover stays under the ₹20 lakh (services) threshold (Notification 65/2017). But this relief does not extend to sellers of goods — for them, registration is unconditional. If you sell across states (which marketplaces do by default), inter-state supply rules reinforce the same conclusion.

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Under Section 24 of the CGST Act, anyone supplying goods through an e-commerce operator that collects TCS must register for GST regardless of turnover — the ₹40 lakh/₹20 lakh thresholds simply don’t apply. So even a first-time seller shipping ₹5,000 of products through Amazon needs a GSTIN before listing.

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Registration: no threshold for marketplace goods sellers

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Registration: no threshold for marketplace goods sellers

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

Selling on Amazon, Flipkart, Meesho or your own Shopify store changes your GST obligations the day you list your first product. Marketplace sellers of goods don’t get the usual turnover exemption — registration is compulsory from the first sale — and the marketplace deducts TCS (tax collected at source) from every settlement. The credit for that TCS is real money, but it sits stuck until you take one step most sellers miss. This guide walks through registration, the TCS mechanism, the exact rate, how to claim the credit, and your monthly filing routine. Position as of FY 2026-27.

At a glance

No turnover exemption for sellers of goods through a marketplace — register before your first sale (Section 24).
TCS rate is 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST) — cut from 1% on 10 July 2024.
The operator files GSTR-8 by the 10th and deposits the TCS; it then lands in your electronic cash ledger.
You still file your own GSTR-1 and GSTR-3B like any regular dealer.
Reconcile the marketplace’s TCS to your sales every month — mismatches are the top notice trigger for online sellers.

Registration: no threshold for marketplace goods sellers

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

At a glance

No turnover exemption for sellers of goods through a marketplace — register before your first sale (Section 24).
TCS rate is 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST) — cut from 1% on 10 July 2024.
The operator files GSTR-8 by the 10th and deposits the TCS; it then lands in your electronic cash ledger.
You still file your own GSTR-1 and GSTR-3B like any regular dealer.
Reconcile the marketplace’s TCS to your sales every month — mismatches are the top notice trigger for online sellers.

Registration: no threshold for marketplace goods sellers

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.

Track every marketplace settlement in one place

At a glance

No turnover exemption for sellers of goods through a marketplace — register before your first sale (Section 24).
TCS rate is 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST) — cut from 1% on 10 July 2024.
The operator files GSTR-8 by the 10th and deposits the TCS; it then lands in your electronic cash ledger.
You still file your own GSTR-1 and GSTR-3B like any regular dealer.
Reconcile the marketplace’s TCS to your sales every month — mismatches are the top notice trigger for online sellers.

Registration: no threshold for marketplace goods sellers

How TCS actually works

TCS is not an extra tax on you — it’s an advance deposit of your own tax, collected by the marketplace on the government’s behalf. Here’s the flow:

A customer pays for your product on the marketplace.
Before settling the money to you, the operator withholds 0.5% of the net taxable value of your supplies (sales minus returns for the month).
The operator deposits that TCS and reports it in GSTR-8 by the 10th of the next month.
The TCS is credited to your electronic cash ledger on the portal, auto-populated from GSTR-8.
You use that balance to offset your GST liability when you file GSTR-3B.

So on a ₹1,00,000 month of net sales, the marketplace parks ₹500 as TCS. You’re not out of pocket — you simply reclaim it against the GST you owe.

Item	Detail
TCS rate	0.5% (0.25% CGST + 0.25% SGST intra-state; 0.5% IGST inter-state)
Collected on	Net taxable value = sales minus returns, for the month
Collected by	The e-commerce operator (Amazon/Flipkart/Meesho etc.)
Operator’s return	GSTR-8, by the 10th of the following month
Where it lands	Your electronic cash ledger, auto-populated

The step sellers miss: claiming your TCS credit

Your monthly filing routine

Being on a marketplace doesn’t change your returns — you file exactly like any regular registered dealer:

GSTR-1 — report all your outward supplies (by the 11th monthly, or quarterly under QRMP).
GSTR-3B — summary return and tax payment (by the 20th, or 22nd/24th under QRMP), offsetting the TCS sitting in your cash ledger.
Reconcile your GSTR-1 sales, the marketplace settlement reports, and the TCS in GSTR-8 — all three should agree.

If you’re new to these two returns, our GSTR-1 & GSTR-3B filing guide covers due dates, late fees and the new locking rules in detail.

Common mistakes to avoid

Listing before registering — selling goods on a marketplace without a GSTIN is a straight non-compliance.
Ignoring TCS reconciliation — unclaimed TCS is your own money left on the table.
Treating TCS as a cost — it’s an advance tax credit, not an expense.
Forgetting returns are still your job — the operator’s GSTR-8 does not replace your GSTR-1/3B.
Mismatched GSTIN on the marketplace — a wrong or old GSTIN means the TCS never reaches your ledger.

Frequently asked questions

Q: What’s the current TCS rate? A: 0.5% of net taxable supplies (0.25% CGST + 0.25% SGST, or 0.5% IGST), reduced from 1% with effect from 10 July 2024.

Q: Is TCS an extra tax I lose? A: No. It’s an advance deposit of your own GST. It sits in your electronic cash ledger and offsets your liability in GSTR-3B.

Q: Do I still file GSTR-1 and GSTR-3B if I only sell on Amazon? A: Yes. The marketplace’s GSTR-8 is separate. Your own outward supplies and tax must be reported in your GSTR-1 and GSTR-3B.