Pick one GST month and one GSTIN. Total the TCS deducted across all settlement cycles in that month, compare it with the TCS in the marketplace's tax report, then compare both with the TCS credit on your GST portal. Log every difference with a reason, such as timing, returns or late filing, and raise unresolved gaps with the marketplace.
What TCS credit in GSTR-8 means for a seller
Under GST, an e-commerce operator collects tax at source (TCS) on the net value of taxable supplies made through its platform. It deposits the amount with the government and reports it seller-wise in GSTR-8. As a seller, you see the same money in two places: as a TCS deduction in your marketplace settlement, and as TCS credit on the GST portal once the operator has filed.
Matching means proving that these two figures agree for every month and every GSTIN. If they do not, you are either under-credited or your books carry the wrong number. The TCS rate and the rules on how it is computed come from the law and notifications, so confirm the current position with your tax adviser and your seller agreement instead of relying on an old settlement or article.
What to collect before you start
Reconciliation fails most often because the inputs are on different bases. Gather these for the same tax period:
- Settlement reports for every payout cycle that touches the month, including adjustments and reversals.
- Marketplace tax or GST report (Amazon and Flipkart both provide one in the seller dashboard; report names change, so check the current menu) showing taxable value, returns and TCS by state and tax head.
- GST portal view of TCS details against the operator's GSTIN in your auto-populated statements, plus the credit in your electronic cash ledger.
- Your filed GSTR-1 for the same period, to compare sales and return values.
- Your seller agreement or help pages for the operator's GSTIN per state and the TCS terms.
Step-by-step: match TCS credit with settlements
- Fix the period by GST month, not payout date. A settlement paid on 3 March may cover orders from February. Use the order or invoice date in the tax report as your anchor, and note which payout cycles feed each month.
- Total TCS from settlements. Sum the TCS lines for the month, split by CGST, SGST and IGST where shown. Keep reversals on returns as separate lines.
- Total TCS from the marketplace tax report. Take the net taxable value and TCS by state. Check that net value equals sales less returns for that month.
- Pull portal TCS credit. Note the figure by operator GSTIN and tax head for the same period. Remember that operators file GSTR-8 after month end, so check that the filing date has passed.
- Compare all three. Settlement TCS, tax-report TCS and portal credit should agree, or differ only by explained items.
- Log each difference with an amount, reason, owner and follow-up date.
- Post to your books. Record the TCS as a receivable or credit as per your accounting policy, then tie it to the cash ledger once the credit appears. Agree the treatment with your tax adviser.
Why the numbers do not match
Most gaps fall into a few buckets. Work through them in this order:
- Timing: returns or cancellations in a later month reduce net value after the original TCS was reported, so the adjustment lands in a different period.
- Late or pending filing: the operator has not filed GSTR-8 for that month, or has filed it and the credit has not yet shown on your side.
- Wrong GSTIN or state: TCS was reported against another registration of yours, or the wrong place of supply.
- Amendments: the operator corrected an earlier GSTR-8 and the figure moved after you had reconciled.
- Different bases: settlement lines include fees, GST on fees or reserves, while the TCS base is net taxable supply value. Do not compare them with each other.
- Income-tax deductions: TDS under the Income-tax Act is a different deduction from GST TCS. Do not mix the two. Check the current section and rate with your tax adviser.
Closing the gap with the marketplace
If a difference stays unexplained after the checks above, raise it with seller support using a clean pack: GST month, your GSTIN, the operator's GSTIN, the settlement IDs, the TCS total you see and the portal figure. Attach the tax report extract. A vague message such as "TCS missing" usually returns a generic answer.
Do not adjust your own returns for credit you cannot see on the portal. Wait for the operator to correct its filing, or take your tax adviser's view on how to handle any remaining difference. Keep every ticket and response, since they are your evidence if the number is questioned later.
Make it a monthly routine
Run the tie-out once GSTR-8 is due and filed, then close the month. Keep one sheet per operator GSTIN with columns for settlement TCS, tax-report TCS, portal credit, difference, reason and status. Carry open items forward instead of overwriting them.
If you sell across several marketplaces, the manual effort multiplies. MarketplaceMetrics by Fundle reconciles marketplace sales and settlements and tracks recovery cases, and Myntra Excel reports are reviewed today. Other marketplaces, including Amazon and Flipkart, are in scope discussion, so ask for a tailored quote based on your set-up.
Worked example
Illustrative example only. These figures are not real rates or results.
A seller reconciles one GSTIN for one month, using purely hypothetical numbers.
| Item | Amount (₹, illustrative) |
|---|---|
| TCS deducted across four settlement cycles | 10,000 |
| TCS in marketplace tax report (net of returns) | 9,600 |
| TCS credit on GST portal | 9,600 |
The settlement shows ₹400 more than the other two. Checking the return lines, the seller finds a return of an order from the previous month. The settlement reversed the TCS only in the next cycle, and the tax report shows it as an adjustment in the following period. The seller logs the ₹400 as a timing difference, confirms it clears in next month's tie-out, and does not raise a ticket. If it had not cleared, the seller would have raised it with the marketplace with the settlement IDs attached.
Questions and answers
Where do I see TCS credit from Amazon or Flipkart on the GST portal?
TCS reported by the operator in GSTR-8 appears against its GSTIN in your auto-populated GST statements, and the credit shows in your electronic cash ledger. Portal menus change, so check the current navigation or ask your tax adviser.
Why does my settlement TCS differ from the GST portal figure?
Common causes are returns falling in a later month, the operator filing GSTR-8 late or amending it, TCS reported under the wrong GSTIN or state, and comparing settlement lines on a payout basis instead of the GST month.
Should I claim TCS credit that is not showing on the portal?
No. Do not rely on the settlement deduction alone. Raise the gap with the marketplace, wait for the operator's filing or correction, and take your tax adviser's view on handling any remaining difference.
Is TCS under GST the same as TDS under section 194-O?
No. GST TCS is reported in GSTR-8 and credited on the GST portal. TDS under the Income-tax Act is a separate deduction tracked through income-tax records. Check current rates and treatment with your tax adviser.