Myntra deducts two statutory amounts from what it owes you: GST TCS (collected under Section 52 of the CGST Act) and income tax TDS (under Section 194-O of the Income-tax Act). Both are calculated on net sales value, not on your payout. They are not Myntra's fees. You recover them as credits in your GST cash ledger and Form 26AS/AIS. Confirm current rates with your tax adviser.
What TCS and TDS mean on a Myntra payout
When Myntra settles your sales, the amount that reaches your bank account is lower than your sales value. Part of that gap is commercial: commission, fixed fees, shipping or other charges as per your agreement. Another part is tax withheld on your behalf. These are two different things and should never be mixed in your reconciliation.
- TCS (Tax Collected at Source) under GST: collected by the e-commerce operator on the net value of taxable supplies made through its platform.
- TDS (Tax Deducted at Source) under income tax: deducted by the e-commerce operator on the gross amount of sales facilitated, as per Section 194-O.
Neither is a cost to your business in the way commission is. They are advance tax payments that you adjust against your own liability. But if they are wrongly computed, your cash is blocked and your credits do not match your books.
Who deducts what, and where you get credit
The two deductions follow different laws and show up in different places.
| Item | Legal basis | Where you see credit |
|---|---|---|
| GST TCS | Section 52, CGST Act | Your electronic cash ledger on the GST portal, after the operator files its return |
| Income tax TDS | Section 194-O, Income-tax Act | Form 26AS / AIS, after the operator files its TDS statement |
Rates, thresholds and exemptions change through notifications and Finance Acts. Do not rely on a number from a blog post, including this one. Check the latest rate with your tax adviser or the official CBIC and Income Tax Department notifications, and check your seller agreement for how Myntra describes the deductions.
How the deduction base is calculated
The most common source of confusion is the base on which tax is computed. Three points matter.
- Returns reduce the TCS base. GST TCS is levied on net taxable supplies, meaning value of supplies less returns in the period. A month with heavy returns should therefore show lower TCS.
- TDS base differs from TCS base. TDS is generally computed on the gross amount of sales, and whether GST is included in that amount depends on how it is invoiced and on current CBDT guidance. Confirm this with your tax adviser.
- Timing differs. Tax is tied to the sale or return event in a period, while settlement may arrive days later. A return processed in one month can reduce tax in the next.
This is why you cannot back-calculate tax by applying one percentage to your bank credit. Always start from net sales value.
Where to find the deductions in Myntra data
Start with the settlement or payment reports available in your Myntra seller panel, and the tax statements issued by Myntra. Report names and column headings vary and change over time, so map them against your own downloads instead of assuming a fixed layout.
Look for these elements for each settlement cycle:
- Order-level sale value, return value and any adjustments
- A separate line or column for TCS and for TDS
- Commission, fees and their GST, shown separately from tax withheld
- Settlement date and the period or settlement ID it belongs to
If a single deduction line mixes tax and fees, ask Myntra support or your account manager for the breakup before you reconcile.
A monthly process to reconcile TCS and TDS
- Group settlements by sale period, not only by bank credit date.
- Compute net sales for the period: sales less returns and cancellations.
- Recompute expected TCS and TDS using the rate and base your tax adviser confirms, and compare with the deducted amounts.
- Compare TCS with your GST portal. Check the credit in your cash ledger and the operator-wise details visible to you.
- Compare TDS with Form 26AS/AIS after the quarter's statement is filed.
- Log differences with order IDs, amounts and the proof you hold, then raise them with Myntra.
Doing this manually across thousands of orders is slow. A reconciliation tool such as MarketplaceMetrics by Fundle can help by matching sales, returns and settlements and flagging deductions that do not follow the agreed terms. Myntra Excel reports are reviewed, so share a sample before you commit.
Common mismatches and what to check
- Credit on the portal is lower than deducted: the operator may not have filed yet, or reported against a different period or GSTIN. Check the state-wise GSTIN you registered on the platform.
- TCS looks too high in a return-heavy month: verify that returns were netted in the correct period.
- TDS missing in Form 26AS: check that your PAN is correctly mapped in Myntra's seller records.
- Deduction without a matching order: treat it as an adjustment and ask for order-level support.
Keep screenshots, settlement files and ticket numbers. Disputes are resolved faster when you give period, order IDs and amounts together.
Worked example
Illustrative example only. The rates below are placeholders chosen for arithmetic, not current rates. Use the rates confirmed by your tax adviser and the latest notifications.
| Line | Illustrative amount |
|---|---|
| Gross taxable sales in the month | ₹10,00,000 |
| Less: returns in the month | ₹1,50,000 |
| Net taxable sales | ₹8,50,000 |
| TCS at a placeholder 2% of net | ₹17,000 |
| TDS at a placeholder 1% (same base assumed for simplicity) | ₹8,500 |
| Total tax withheld | ₹25,500 |
If Myntra's statement shows TCS computed on ₹10,00,000 (that is ₹20,000 at the placeholder rate), the ₹3,000 difference points to returns not being netted. That is the kind of variance to raise with support, with order-level proof attached.
Questions and answers
Are TCS and TDS on a Myntra payout the same as Myntra's commission?
No. Commission and fees are commercial charges under your seller agreement. TCS and TDS are statutory tax amounts withheld for the government. You adjust them as credits in your GST ledger and Form 26AS/AIS, so track them separately from fees.
How do I claim credit for TCS deducted by Myntra?
GST TCS appears in your electronic cash ledger on the GST portal once the operator files its return. TDS appears in Form 26AS or AIS. Match both against your settlement statements and have your tax adviser guide how to use them.
Why is my TCS lower in months with more returns?
GST TCS is based on net taxable supplies, which means sales less returns in the period. A month with higher returns reduces the base, so TCS falls. Check that each return is netted in the correct month and against the right order.
What should I do if the TDS in Form 26AS does not match my settlements?
First check PAN details and the quarter in which the TDS was reported. Then compare deductions order-wise against settlement reports. If a gap remains, raise it with Myntra, attaching settlement IDs, amounts and your 26AS extract. Your tax adviser can advise on corrections.