When a marketplace like Myntra pays you, it may hold back GST TCS (Section 52, CGST Act) and income tax TDS (Section 194-O). These are your tax credits, not fees. Find the amounts in your settlement report, recompute them on the correct base, and match them to your GST portal and Form 26AS or AIS. Confirm current rates with your tax adviser.
What TCS and TDS mean on a Myntra payout
When a marketplace collects money from customers and pays sellers, the law makes it deduct two kinds of tax at source before the payout reaches you. Neither is a marketplace fee. Both are your tax, paid in advance to the government, and you claim them later.
- GST TCS: tax collected at source by the e-commerce operator under Section 52 of the CGST Act, on net taxable supplies made through the platform. It is credited to your electronic cash ledger once the operator reports it.
- Income tax TDS: tax deducted at source under Section 194-O of the Income-tax Act on sales made through the e-commerce operator. It appears as credit against your income tax in Form 26AS and AIS.
Because they are credits, a wrong or missing deduction hurts you twice: your cash received is lower, and your credit may not show up when you file.
Where the deductions appear in your settlement data
Myntra settlement and payout reports typically show sales, returns, commissions, fees and taxes by order or by settlement cycle. Report formats change, so open the latest file and identify the columns that carry TCS and TDS, and the value they are calculated on.
- Look for separate TCS and TDS columns or lines, not amounts buried inside a net payout figure.
- Note the base used: invoice value, taxable value or value net of returns.
- Check whether returns and cancellations reverse the deduction in a later cycle.
- Keep the settlement or payment advice number so every deduction maps to a bank credit.
If your report does not show these lines clearly, ask your Myntra account manager or seller support for the deduction statement and keep their reply on file.
How to reconcile TCS and TDS each month
- Export the month's settlements. Include sales, returns and adjustments for the same period.
- Compute the base. Work out the value the deduction should apply to, using the rule in your seller agreement and your adviser's guidance.
- Recompute the deduction. Multiply by the rate currently applicable. Do not copy a rate from an old blog or a previous year's sheet.
- Compare with the report. Flag any order or cycle where the deducted amount differs from your calculation.
- Tie to the bank. Confirm that gross settlement less all deductions equals the amount credited to your account.
- Log exceptions. Raise queries with Myntra with order IDs, cycle dates and your working.
Doing this monthly is far easier than rebuilding twelve months at year end.
Matching deductions to your tax records
The settlement report is only half the check. The deduction must also appear in government records under your name.
| Deduction | Check against | What to confirm |
|---|---|---|
| GST TCS | GST portal TCS details and electronic cash ledger | Amount reported by the operator matches your payout reports for the period |
| Income tax TDS | Form 26AS or AIS on the income tax portal | Amount and your PAN match the deducted TDS |
Credits usually appear only after the operator files its returns, so there can be a lag. Ask your tax adviser how long to wait before escalating a missing credit, and what timelines apply to claiming it.
Common reasons the numbers do not match
- Returns timing: a sale in one cycle and its return in the next can shift the base across periods.
- Different base: the marketplace may compute on a value different from the one you assumed.
- Wrong registration or PAN details: a mismatch in GSTIN or PAN can leave credit unmapped to you.
- Manual adjustments: debit notes, penalties or claims netted off the payout can be mistaken for tax deductions.
- Late reporting: the deduction is in your payout but not yet visible on the portal.
Separate tax deductions from commissions and fees in your working. Otherwise a fee overcharge can hide inside a payout that looks roughly right.
Where to confirm current rates and rules
Rates, thresholds and conditions for TCS and TDS have changed before and may change again, so treat any figure you see in an article as a prompt to verify, not a rule to apply. Confirm in these places:
- Your Myntra seller agreement and any addenda.
- The notified provisions on the GST and income tax portals.
- Your chartered accountant or tax adviser, especially for your specific entity type and turnover.
If you run this check across many cycles, MarketplaceMetrics by Fundle can reconcile marketplace sales and settlements, test commissions and fees against agreed terms, and track returns and recovery cases. Myntra Excel reports are reviewed; other marketplaces are in scope discussion.
Worked example
Illustrative example only. All figures are made up to show the method. The implied percentages are arithmetic outputs, not statements of current rates.
| Line | Amount (₹, illustrative) |
|---|---|
| Gross sales in the cycle | 10,00,000 |
| Returns in the cycle | 1,50,000 |
| Net sales (base used for this example) | 8,50,000 |
| TCS shown in report | 4,250 |
| TDS shown in report | 8,500 |
| Commission and fees shown in report | 1,70,000 |
Implied TCS = 4,250 ÷ 8,50,000 = 0.50%. Implied TDS = 8,500 ÷ 8,50,000 = 1.00%. Compare each with the rate your adviser confirms for the period. If the confirmed rate gives a different amount, the gap is your query to Myntra. Then check that net sales less commission, fees, TCS and TDS equals the bank credit, and that the same TCS and TDS appear in your GST and income tax records.
Questions and answers
Is TCS on a Myntra payout the same as TDS?
No. TCS is GST tax collected at source under the CGST Act and is credited to your GST electronic cash ledger. TDS is income tax deducted under the Income-tax Act and appears in Form 26AS or AIS. They have different bases, rates and credit routes.
How do I claim credit for TCS and TDS deducted by Myntra?
TCS credit is reflected in your GST electronic cash ledger once the operator reports it, and TDS credit appears in Form 26AS or AIS for use when filing your income tax return. Your tax adviser can confirm the exact steps and timelines.
What should I do if the deduction in my report looks wrong?
Recompute it on the correct base using the currently applicable rate, then raise a query with Myntra seller support citing order IDs, settlement cycle and your working. Keep all replies, and check your tax portals to see whether the credit was affected.
Where can I find the current TCS and TDS rates?
Check the notified provisions on the GST and income tax portals, your Myntra seller agreement, and advice from your chartered accountant. Do not rely on old articles or spreadsheets, because rates and thresholds can change, so confirm the latest terms before reconciling.