Myntra Seller Deductions: List and Meaning

What counts as a deduction in a Myntra payout

Your payout is the sale value of delivered orders, minus everything Myntra charges or withholds, plus any reversals for returns or corrections. Anything that reduces the amount credited to your bank account is a deduction, whether it is a fee, a tax collected on your behalf or a penalty.

It helps to sort deductions into four groups:

• Fees: commission and other service charges for selling and fulfilling orders.
• Taxes: GST charged on fees, and tax collected or deducted at source.
• Return-related charges: what you pay or lose when orders come back.
• Adjustments: penalties, claims, corrections and carry-forwards from earlier periods.

Column names in your reports may differ from the labels used here. Always go by the definitions in your own settlement report and agreement.

Common Myntra deductions and what they mean

• Commission: the marketplace's charge for selling your product. It is usually set by category or by your commercial terms. Check it against your agreed rate card, not against what a colleague pays.
• Fixed or collection fee: a per-order or per-unit charge that may apply on top of commission, depending on your terms.
• Shipping or logistics fee: the charge for delivering the order, often linked to weight or slab. Disputes here usually come from wrong weight or slab assumptions.
• Pick-and-pack or fulfilment charges: applicable only if your arrangement includes marketplace-handled fulfilment.
• GST on fees: tax charged on the services above. Confirm the applicable rate with your tax adviser and the invoice, not from memory.
• TCS (tax collected at source): an amount withheld under GST law on supplies made through an ecommerce operator. Rates and rules change, so check the latest notification or ask your tax adviser.
• TDS: income tax deduction, if applicable to your payments. Confirm applicability and rate with your tax adviser.
• Return and RTO charges: fees linked to customer returns or undelivered shipments. Whether the commission is refunded on a return depends on your terms.
• Penalties and adjustments: charges for things like cancellations, delays or quality issues, plus manual corrections. These need the most scrutiny.

How to read your Myntra settlement report

Do not start with the total payout. Start with one order and trace it end to end.

1. Match the order. Pick an order ID and find it in your sales data, then in the settlement report.
2. Confirm the base value. The sale value in the settlement should match the order value after any discount borne by the marketplace or by you, as per your terms.
3. List each deduction. Write down every fee, tax and adjustment line against that order.
4. Compare with your terms. Check commission and fees against your agreement or rate card for that category and date.
5. Check the status. Delivered, returned and cancelled orders settle differently, so confirm the final status before judging the amount.
6. Roll up. Only after individual orders tie out should you total the period and match it to the bank credit.

Deductions that most often need a second look

Most payout gaps do not come from one big error. They come from many small ones repeated across orders.

• Fee not matching the agreed rate: a category change, an expired promotional rate or a wrong slab can quietly raise charges.
• Return charges on orders you did not expect: compare the return entry with your returns data and the reason code.
• Returned items not received or received damaged: if the settlement reverses the sale but you never got stock back in sellable condition, that may be a recovery case.
• Penalties without a clear reference: ask for the order, date and rule behind each one.
• Carry-forward adjustments: a deduction in this cycle may relate to an earlier one, so keep prior-period reports handy.
• Timing differences: a sale in one month may settle in the next, which is why month-end sales and bank credits rarely match directly.

Where to confirm rates and rules

Fee rates and tax treatment change, and they differ by seller and category, so do not rely on an article, including this one, for the number. Use these sources instead:

• Your seller agreement and rate card: the authority for commission, fixed fees and logistics charges.
• The settlement report and invoices: what was actually charged.
• Your Myntra seller panel or account manager: for current policy notes and any amendments.
• Your tax adviser or the official GST and income tax notifications: for GST, TCS and TDS rates and treatment.

Keep a dated copy of each rate card version. When a rate changes mid-year, you need to know which version applied to which order.

Making deduction checks a monthly habit

A manual check works at low volumes: sample orders, recompute fees in a sheet and note differences. As order counts grow, sampling misses patterns, and checking every order becomes the only reliable way to catch small, repeated overcharges.

MarketplaceMetrics by Fundle is built for this: it reconciles marketplace sales and settlements, checks commissions and fees against the terms you have agreed, and tracks returns and recovery cases. Myntra Excel reports are reviewed, and coverage of other marketplaces is a matter for discussion. Whichever method you use, keep a simple log of every mismatch with the order ID, expected amount, charged amount and the status of your claim.