GST for Online Sellers: GSTR-1, TCS and What Your Marketplace Reports Mean

Selling through marketplaces adds some GST work that regular shop owners do not have. The marketplace collects tax at source, you sell to customers in many states, and each platform gives a different report. If you understand four things, the work becomes routine.

1. Why you need GST registration

Most sellers who supply goods through e-commerce platforms need a GST registration, and the usual turnover limit does not help them in many cases. Check the current rule for your goods, and talk to your CA before you start selling if you are not registered.

2. What is TCS and why does it matter

TCS means tax collected at source. The marketplace holds back a small percentage of your net taxable sales and deposits it to the government in your name. It is not an extra cost. It shows in your GST account (as credit) and you can use it against your GST liability. But it reduces the cash you receive in each settlement, and it must match the amount shown in your GST portal. If it does not match, tell the marketplace.

3. What goes into GSTR-1

GSTR-1 is your monthly (or quarterly, if you chose that) statement of sales. For marketplace sellers it usually has the sales made through each platform, shown state by state and by tax rate, with returns and cancellations taken off. The numbers come from the sales report of each marketplace, not from your bank statements.

• Use the taxable value, not the price the customer paid including tax.
• Keep sales with different tax rates separate.
• Show sales by state of delivery.
• Take returns off in the month they happen, as per the rules.

4. Reports to download from each marketplace

A monthly routine that works

1. After the month ends, download the sales and return reports from every marketplace.
2. Combine them into one summary: state, tax rate, taxable value, tax.
3. Compare the totals with the marketplace's own tax summary. Differences usually come from returns or cancelled orders.
4. Check your TCS against the figure on the GST portal.
5. Give the summary to your CA or file it yourself before the due date.
6. Keep the downloaded reports safe. You may need them for years.

Common mistakes

• Using the selling price instead of the taxable value.
• Forgetting returns from earlier months.
• Mixing different tax rates in one line.
• Not checking TCS until the end of the year.

Seller Book prepares the state-wise and rate-wise GST summary from your marketplace reports and gives a downloadable file for your CA, so the monthly work takes minutes instead of days. Please still have your CA review before you file.