GST

GST for ecommerce marketplaces

Taxable value, rates, TCS, TDS, refunds and return data — how GST behaves in marketplace selling and what that means for your accounting and your returns.

Marketplace GST is complicated because one order produces several tax-relevant components, reported by the marketplace in its own format. This guide maps each component to the accounting it needs.

GST events in a marketplace sale

A typical marketplace sale attracts GST on more than the goods:

  • Output GST on the sale of goods.
  • GST on marketplace charges such as commission, where applicable.
  • Taxable events on reverse-charge situations.
  • TCS collected by the marketplace on eligible sales.
  • TDS withheld by the marketplace on payment to you.

Each has its own taxable value, rate and GST head.

Taxable value and rates

The taxable value is the value on which tax is charged, and the rate is per the applicable HSN/SAC. Both must be captured per order and per charge. A blended or averaged rate is not usable for returns; per-rate totals per head are what your books need.

GST on marketplace charges

Marketplace fees, commission and logistics can carry their own GST. If treated as a lump sum without per-charge tax, input credit is misstated and reconciliations fail. Capture the charge, its taxable value and its GST head for each order.

TCS on ecommerce sales

Under the ecommerce TCS regime, the marketplace collects Tax Collected at Source from the buyer on eligible sales, remits it, and reports it against your PAN. In your books TCS is a tax-collected position that must reconcile against the marketplace’s filings and your returns.

TDS on marketplace payments

When the marketplace settles to you, it may withhold TDS as a payer. The payout is lower than the settlement; the withheld amount is a tax-receivable backed by a TDS certificate. It is not a cost.

Refunds and return data

A refund reverses the original sale and its GST, and any recharge of charges and taxes on the return depends on the marketplace’s rules. Because the original entries are per order, the reversal is a clean set of negative or reversing lines, including the tax.

From GST data to GST-wise accounting

The end state is accounting that is structured by GST head and rate, traceable per order, and posted into the ERP with the correct tax accounts and GST structures — ready for return data extraction and reconciliation against marketplace filings.

DeepEcom captures TCS and TDS as first-class data and produces order-wise, GST-wise accounting your books and your returns can agree on.

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