See how much GST TCS a marketplace like Amazon or Flipkart collects on your sales and how it splits into CGST/SGST or IGST. TCS is credited to your GST cash ledger, so it is not a cost.
Under GST, e-commerce operators such as Amazon, Flipkart, and Meesho must collect Tax Collected at Source (TCS) on the net value of taxable sales made through them, and deposit it against your GSTIN. Net value means your sales minus returns for the period. Because the amount lands in your GST electronic cash ledger, you can use it to pay your output tax, so TCS is a timing difference, not a real cost like commission.
The TCS rate was reduced from 1% to 0.5% of net taxable sales with effect from 10 July 2024. For a sale within your state it splits as 0.25% CGST plus 0.25% SGST; for an inter-state sale it is 0.5% IGST. Rates can change, so confirm the current notification before you rely on a figure.
You sell ₹1,00,000 of taxable goods in a month through a marketplace, all within your state. At 0.5%, the operator collects ₹500 as TCS, split into ₹250 CGST and ₹250 SGST. This ₹500 appears in your cash ledger and can be set off against the GST you owe on those sales.
No. TCS is not a charge you lose; it is your own tax collected in advance by the marketplace and credited to your GST cash ledger. You claim it against your output GST. The real marketplace cost is the commission, which is separate.
It was reduced from 1% to 0.5% of net taxable sales with effect from 10 July 2024. Within a state it is 0.25% CGST plus 0.25% SGST; inter-state it is 0.5% IGST. Always confirm the latest rate on the GST portal.
The operator files a TCS statement (GSTR-8) and the amount auto-populates in your GST portal (TCS credit), which you accept and it moves to your cash ledger. From there it offsets your tax liability.
No. Commission is the marketplace's fee for selling on their platform and is a genuine cost. TCS is a tax collected on your behalf that you get back. Use our Marketplace Commission tool to work out the commission separately.
Commmerce pulls your marketplace orders, fees, and tax into one dashboard so nothing slips through at filing time.
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