GST for E-commerce Sellers in India: What You Actually Owe
TCS, GSTR-1, input tax credit, and platform GST deductions explained simply for Meesho, Flipkart, and Amazon sellers.
🧮 GST Calculator — Try it freeGST on marketplace sales confuses even experienced sellers. Platforms deduct TCS, buyers see GST-inclusive prices, and your actual liability depends on registration type and turnover. Here's what matters for profit calculation.
GST Registration Thresholds
- ₹40 lakh turnover (goods) — most states
- ₹20 lakh for special category states
- Mandatory if selling on marketplace regardless in some cases
- Composition scheme: limited to ₹1.5 crore, not for inter-state e-commerce
TCS (Tax Collected at Source)
Marketplaces deduct 1% TCS (0.5% CGST + 0.5% SGST or 1% IGST) on taxable value. This appears in GSTR-2A and can be claimed as credit — it's not an extra cost if you're GST registered.
Input Tax Credit on Business Expenses
Shipping, packaging, software, and photography GST can be claimed as ITC. Many sellers forget courier GST invoices — that's real money left on the table.