TCS collected by Amazon under GST is reported by Amazon in its GSTR-8. Once filed, the amount reflects against your GSTIN on the GST portal and is credited to your electronic cash ledger. You then use that balance to pay output GST in GSTR-3B. Reconcile the portal figure with the TCS in your Amazon settlement reports each month, and raise any gap with the marketplace.
What TCS credit is and why it matters
Under GST, an e-commerce operator such as Amazon or Flipkart collects tax at source (TCS) on the net value of taxable supplies made through its platform. The amount is deducted from your settlement and deposited with the government by the operator. It is not an extra cost: it is an advance of tax against your GSTIN, and you get credit for it.
The rate is set by notification and has changed in the past, so never hard-code it. Check the current rate in the latest CGST notification, your marketplace tax documents, or with your tax adviser.
- Cash flow: TCS reduces what you receive in each settlement, so unclaimed credit locks up working capital.
- Compliance: if the operator reports less than it deducted, your credit is short.
Where the credit shows up on the GST portal
The operator files GSTR-8 by the due date in the following month. The TCS details are then reflected against your GSTIN in your auto-populated statements on the portal, and the amount is credited to your electronic cash ledger.
- Log in to the GST portal with your GSTIN.
- Open the auto-populated statement or return view that carries the TCS section for the month.
- Note the operator's GSTIN, the gross and net supply values, and the TCS amount.
- Check the electronic cash ledger for the matching credit.
Portal menus and workflows change, so confirm the current path with your tax adviser or the GST portal help section.
How to claim and use the credit
There is no separate claim form in the usual case. The credit moves to your cash ledger, and you use it when you pay tax.
- Download the marketplace tax report for the month from Amazon Seller Central or Flipkart Seller Hub (look in the tax or GST document section; names differ).
- Compare it with the TCS values on the portal.
- Accept or flag the details wherever the portal asks you to act, and keep a note of any differences.
- Prepare GSTR-1 and GSTR-3B as usual. Compute your output GST liability.
- Offset the liability using the cash ledger balance, including the TCS credit, and pay only the balance.
Remember that cash ledger credit is for tax payment. It cannot be used like input tax credit for purchases, and it is not interchangeable across tax heads unless the rules allow it. Ask your adviser about your specific position.
Match TCS against your settlements
Your settlement reports and the portal should tell the same story. Build a monthly check like this:
| Source | What to take | Compare with |
|---|---|---|
| Amazon or Flipkart settlement report | TCS deducted for the period | Portal TCS credit |
| Marketplace tax report | Net taxable value and TCS | Your GSTR-1 sales |
| GST portal | TCS amount by operator GSTIN | Cash ledger entry |
Do this by GSTIN and by month, not as a yearly total, so that timing differences do not hide real shortfalls.
Common mismatches and what to do
- Timing: a deduction in one settlement cycle may land in a different GSTR-8 month. Compare by tax period, not payout date.
- Returns and cancellations: net value falls when orders are returned, so TCS can be adjusted in a later month.
- Late or amended GSTR-8: credit appears only after filing, so a delay on their side delays your credit.
- Wrong GSTIN or state: TCS reported against a wrong registration needs a written correction request.
For any gap, raise a ticket with the marketplace with the settlement extract, the portal screenshot and the period. Tools like MarketplaceMetrics by Fundle can keep settlement-side TCS and recovery cases in one place, so open differences are not lost in email threads.
Do not confuse GST TCS with income-tax TDS
Marketplaces may also deduct income-tax TDS on payments to sellers under a separate provision. That amount is not credited to your GST cash ledger. It appears in Form 26AS or AIS and is claimed in your income tax return. Keep the two reconciliations separate, and confirm the current rates and rules with your tax adviser.
Worked example
Illustrative example only. These figures are not real rates or results.
- Amazon settlement reports show TCS deducted for the month: ₹5,000.
- GST portal shows TCS credit for the same tax period: ₹4,800.
- Difference: ₹200. Cause to check: a return adjusted in the next period, or an under-reported GSTR-8 entry.
- Your output GST liability for the month: ₹30,000.
- Cash ledger TCS credit used: ₹4,800. Balance paid in cash: ₹25,200.
Next step: carry the ₹200 as an open item, check next month's adjustment, and raise a ticket if it does not clear.
Questions and answers
Is Amazon TCS credit the same as income-tax TDS?
No. GST TCS is collected under the CGST Act and credited to your electronic cash ledger. Income-tax TDS on e-commerce payments is a separate deduction that appears in Form 26AS or AIS and is claimed in your income tax return. Check both with your tax adviser.
Why is TCS on the GST portal different from my Amazon report?
Common causes are period timing, returns and cancellations netted in a later month, or the operator filing GSTR-8 late or with an amendment. Compare month by month, note the difference, and raise it with the marketplace using the portal figure and your settlement report as proof.
Does the same process work for Flipkart?
The GST mechanism is the same for any e-commerce operator that files GSTR-8, so the credit reaches your cash ledger the same way. Report names and download paths in Flipkart Seller Hub differ from Amazon Seller Central, so check each portal's tax document section.
Can unused TCS credit be refunded?
Credit in the electronic cash ledger can generally be used against tax liability, and a refund of excess balance may be possible by application under GST rules. Conditions and timelines apply, so confirm the current procedure with your tax adviser or the GST portal before planning cash flow around it.