GST Filing for E-commerce Sellers
GST compliance for marketplace and online sellers — settlements, returns, TCS and warehouses, reconciled every month.
In a typical month, you deal with
- Orders across one or more marketplaces
- Returns, cancellations and replacements
- Marketplace fees and commissions
- TCS collected by marketplaces
- Stock in your own or marketplace warehouses
How GST works for e-commerce sellers
When you sell through a marketplace, the marketplace collects TCS of 0.5% on your net sales and reports it, and you claim that amount as a credit after accepting it on the portal. Your own sales records, the marketplace’s settlement reports and its TCS statement all need to agree. Returns need credit notes. Stock kept in a warehouse in another state means you need GST registration there too. Marketplace commissions and fees carry GST that you can claim as input tax credit.
What data should you maintain?
- Order reports for each marketplace
- Returns and cancellations reports
- Sales through your own website
- Credit notes for returns
- Settlement / payment reports
- TCS statements
- Commission and fee invoices
- Warehouse and fulfilment details
- GSTR-1 and GSTR-3B (for each state GSTIN)
- TCS credit accepted on the portal
- GSTR-2B
- E-way bills for stock transfers
Your monthly GST workflow
- Order reports
- Returns & credit notes
- Settlement reports
- TCS statement
- Fee invoices & GSTR-2B
- Reconciliation
- GSTR-1
- GSTR-3B
- GST report
Common GST mistakes
TCS collected by marketplaces is your money — but it is credited only after you accept it on the portal.
Returned orders reduce your tax only through credit notes; otherwise you pay GST on sales that came back.
Stock stored in another state’s warehouse requires a GST registration in that state.
Your GSTR-1 should match what the marketplace reports for you; mismatches lead to notices.
Commission and fee invoices from marketplaces carry GST that is claimable as credit.
Moving stock between your own GSTINs is a taxable supply that needs an invoice and, usually, an e-way bill.
What should you send every month?
Choose your business type. This is the data a good GST process starts with.
Your monthly GST data checklist
Download this checklist
Get it as a file to share with your team or accountant.
How Tax Paramarsh helps
- Reconcile order, returns and settlement reports for each marketplace
- Match your sales with marketplace TCS and accept the credit
- Claim GST on marketplace fees through GSTR-2B
- Prepare GSTR-1 and GSTR-3B for each state GSTIN
- Advise on registrations for warehouse states
Pricing
Single-marketplace sellers usually fit Standard (₹599/month); several marketplaces or warehouse states need Pro (₹999/month) or a custom Business plan (one plan per GSTIN). Plus 18% GST. Basic covers up to 10 invoices a month, Standard 11–50 and Pro 51–200 — with turnover up to ₹50 lakh for Basic and Standard, and ₹1 crore for Pro. Pay yearly and get 12 months for the price of 10.
See all GST plans →Common questions
Do I need GST registration to sell online?
Small sellers who supply goods only within their own state through a marketplace, below the turnover threshold, can sell without registering under conditions. Selling goods to other states generally needs registration.
What is TCS in e-commerce?
Marketplaces collect tax at 0.5% of your net taxable sales (sales minus returns) and deposit it. It appears as a credit you accept on the portal, after which it can be used to pay your GST.
How are returns handled?
Issue credit notes for returned orders and report them in GSTR-1. The marketplace also reduces your net sales for TCS. Both should agree.
My products are in a marketplace warehouse in another state. Do I need to register there?
Yes. Goods stored in a state make that state a place of business, which needs a GST registration in that state.
Can I claim GST on marketplace commission?
Yes. The marketplace’s invoices for commission, shipping and other fees carry GST that you can claim as input tax credit once they appear in your GSTR-2B.
Often needed alongside GST
GST for other industries
Let us reconcile your marketplace GST every month.
Accurate data, reconciled credit, filed on time.