Build a monthly sales register for each marketplace using the same period and basis, net off returns and credit notes, combine them with your other channels, and compare the total with the taxable value and tax in GSTR-1 and GSTR-3B. Explain every difference as timing, returns, or error, then check TCS and fee invoices against GSTR-2B and your ledgers.
Why GSTR-3B and marketplace sales rarely match
GSTR-3B is a summary return. Each marketplace report is order-level. The two are built on different dates, different definitions of 'sale' and different treatment of returns, so they will not match by default.
Common reasons for gaps:
- Marketplace reports use order date, dispatch date or settlement date, while your invoice date drives GST.
- Returns and cancellations arrive in a later month than the original sale.
- Settlement reports show net payouts after commission, shipping and TCS, not taxable value.
- Each platform exports in a different format and column naming.
The goal is not to force a zero difference on day one. It is to explain every rupee of difference.
Step 1: Fix the period and the basis
Decide one basis for every platform and write it down. For goods, your invoice or time-of-supply date under GST is what matters, so confirm with your tax adviser which date your invoices carry on each marketplace.
- Choose the return period (for example, April invoices only).
- Choose the date field you will filter on in every report.
- Record whether values are inclusive or exclusive of GST in each export.
- Keep the cut-off the same month after month.
Most reconciliation pain comes from mixing bases, such as one platform by order date and another by delivery date.
Step 2: Build one sales register per platform
Download the sales or order report for each marketplace and standardise it into the same columns:
- Platform, order ID, invoice number and invoice date
- State of supply (place of supply)
- Taxable value, GST amount and invoice total
- Status: delivered, returned, cancelled, RTO
Keep the raw export untouched in a separate tab. Work only on the standardised copy. Check that the invoice count matches the invoice series you issued, so gaps in numbering are caught early.
Step 3: Net off returns, cancellations and credit notes
Pull the returns report for every platform and match each return to its original order ID. Then separate returns into two groups:
- Same-period returns: reduce this month's sales.
- Prior-period returns: need a credit note treatment in the month you account for them. Confirm the correct treatment and time limits with your tax adviser.
Cancellations before dispatch usually should not appear as outward supplies at all. RTO and customer returns need checking against how you issued credit notes. A returns tracker that carries each case until it is closed saves a lot of rework at month-end.
Step 4: Tie the register to GSTR-1 and GSTR-3B
Combine the platform registers, add any sales from your own website, offline or B2B channels, and compare with what you filed.
| Line | Source |
|---|---|
| A. Net taxable value, all channels | Combined sales registers |
| B. Taxable value in GSTR-1 | Filed GSTR-1 summary |
| C. Taxable value in GSTR-3B outward supplies | Filed GSTR-3B |
| Differences (A−B, B−C) | Explain each one |
Do the same for tax amounts, split by IGST, CGST and SGST. Wherever a platform invoice shows a different tax split from your register, check the place of supply first.
Step 5: Check TCS, fees and input tax credit
Marketplaces collect tax at source on net taxable supplies and report it, so the seller side should agree with it. Do not assume the platform's figures are right. Check:
- TCS shown in settlement reports against what appears in your GST portal records and cash ledger. Confirm the current rate and rules in the law or with your tax adviser.
- Commission, fixed fee and shipping fee GST invoices against GSTR-2B before claiming input tax credit.
- Fee charged against the rate card or seller agreement.
MarketplaceMetrics by Fundle automates part of this for Indian brands by reconciling sales and settlements, checking commissions and fees against agreed terms, and tracking returns and recovery cases. Myntra Excel reports are reviewed today, and other marketplaces are in scope discussion.
Worked example
Illustrative example (figures are illustrative only, not real data):
| Channel | Gross taxable value | Returns | Net |
|---|---|---|---|
| Marketplace A | ₹10,00,000 | ₹1,00,000 | ₹9,00,000 |
| Marketplace B | ₹6,00,000 | ₹50,000 | ₹5,50,000 |
| Own website | ₹2,00,000 | ₹0 | ₹2,00,000 |
| Total | ₹18,00,000 | ₹1,50,000 | ₹16,50,000 |
Suppose GSTR-3B shows ₹16,20,000. The difference is ₹30,000. On checking, ₹18,000 is Marketplace B returns received after month-end and handled in the next period (timing). The remaining ₹12,000 traces to two Marketplace A invoices missing from the GSTR-1 upload. That one needs correction through the amendment route your tax adviser recommends. Every rupee now has a reason.
Questions and answers
Should I reconcile GSTR-3B to settlement reports or sales reports?
Start with sales reports and invoices, because GST is on supply value, not payout. Use settlement reports in a second step to check TCS, commission and fees. Settlement amounts are net of deductions, so comparing them to GSTR-3B directly will always show a gap.
How often should I do this reconciliation?
Monthly, before you file GSTR-3B. Doing it after filing means errors become amendments. A short weekly check of returns and missing invoice numbers makes the month-end exercise much lighter, especially with several marketplaces.
Why does GSTR-3B differ from GSTR-1 for marketplace sellers?
Common causes are credit notes, amendments to earlier invoices, and timing differences in how each return was prepared. Compare them line by line by period, and keep a note for each difference. Confirm treatment of amendments with your tax adviser.
Where do I find the latest TCS and fee rules?
Check the current GST law and notifications through your tax adviser or the official GST portal for TCS. For commission and fees, use your marketplace seller agreement and latest rate card. Do not rely on old blog posts or memory.