How to Sell on Amazon India, Flipkart and Meesho in 2026: Your First 60 Days
E-commerce | RegisCorp Team
Here is how to sell on Amazon India, Flipkart or Meesho in 2026. You need a PAN, a bank account in the seller's name, a pickup address and, for almost every product, a GSTIN. Meesho and a narrow Amazon route allow a GST exemption for small, same-state sellers. Expect 18% GST on marketplace fees, 0.5% GST TCS and 0.1% income-tax TDS on your sales, and a payout about a week after delivery. Returns decide whether you make money.
Checked on 9 October 2026. Fees and policies on these platforms change every few months, so treat every fee in this post as a starting point and confirm it inside your seller dashboard.
RegisCorp Consultancy LLP is a digital-first compliance firm in Kota, Rajasthan, serving businesses across India. We handle GST registration, GST returns and bookkeeping for online sellers. This post is the setup path we would want a new seller to follow: what to register, what each marketplace asks for, what an order really costs, and what to file each month.
Key takeaways
- Most sellers need a GSTIN before they can list. The same-state exemption route (Notification 34/2023-Central Tax) exists, but a single inter-state order ends it.
- GST registration is free on the government portal. The slow parts are category approvals: BIS for many electronics accessories, FSSAI for food, and brand approval for gated brands.
- The marketplace collects 0.5% GST TCS (since 10 July 2024) and deducts 0.1% income-tax TDS (since 1 October 2024). Both are credits, not costs, but they lock up cash and need monthly checking.
- The commission is no longer the main cost. In 2026, Amazon, Flipkart and Meesho have zero commission or zero referral fees on large parts of the catalogue. Shipping, returns and ads now decide your margin.
- In our worked examples, a kurta at a 25% return rate earns about 5% of price, and at 35% returns it loses money. A charger and a dry-fruit pack show the same pattern.
- Plan working capital for the gap between paying your supplier and getting paid. In our kurta example that is about 18 days of stock cost, roughly ₹2,70,000.
- The Consumer Protection (E-Commerce) Amendment Rules 2026 start on 1 January 2027. They put new disclosure duties on sellers, including your GSTIN and a 30-day prior-price rule for discounts.
- Pick your legal entity before you open seller accounts. Changing it later means a new GSTIN, new KYC and a new bank account on every platform.
The key numbers and dates at a glance
| Item | Rule or figure | Source status |
|---|---|---|
| GST threshold for goods | ₹40 lakh (₹20 lakh in some special category states) | Standard rule |
| Registration for marketplace sellers | Compulsory, except the same-state exemption | Notification 34/2023-CT |
| Exemption conditions | Goods only, one state, no inter-state supply, PAN, enrolment number | Notification 34/2023-CT |
| GST TCS | 0.5% of net taxable value (0.25% + 0.25%, or 0.5% IGST) | Notification 15/2024-CT |
| Income-tax TDS | 0.1% of gross sales; section 393(1) from 1 April 2026 | Finance (No. 2) Act 2024; Income-tax Act 2025 |
| TDS exemption | Individual or HUF up to ₹5 lakh a year, with PAN or Aadhaar | Per secondary sources |
| GST on marketplace fees | 18% | Per platform fee notes |
| GST on apparel and footwear | 5% up to ₹2,500 per piece or pair; 18% above | 22 September 2025 changes |
| Amazon zero referral fee | Products under ₹1,000 in 1,800+ categories, from 16 March 2026 | Amazon press release |
| Amazon closing fee rise | +₹1 up to ₹500; +₹3 above ₹500, from 7 September 2026 | Trade press |
| Amazon seller-cancellation fee | 10% / 8% / 5% / 2% of order value by band, from 17 August 2026 | Trade press |
| Flipkart fashion commission | 0% at all price points, announced 8 July 2026 | Flipkart announcement |
| Meesho commission | 0%; payout on the 7th day after delivery | Meesho seller page |
| Amazon payout | Eligible 7 days after delivery, paid every 7 days | Amazon seller FAQ |
| GSTR-1 / GSTR-3B (monthly) | 11th / 20th of the next month | Standard rule |
| E-Commerce Amendment Rules | Notified 9 September 2026; effective 1 January 2027 | Law-firm summaries |
How to sell on Amazon India, Flipkart and Meesho: what each asks at onboarding
All three let you create an account for free. Amazon says listing is free and it charges only when you get an order. Registration takes minutes. Verification and category approvals take days. The table shows what we could confirm from the platforms' own pages and what we could only confirm from secondary sources.
| Amazon India | Flipkart | Meesho | |
|---|---|---|---|
| Tax ID | GSTIN for taxable goods; PAN route only for GST-exempt goods | GSTIN for all categories (secondary sources); PAN-only for books | GSTIN, or Enrolment ID/UIN if you qualify |
| Bank | Active business account | Account number and IFSC | Active account under the same GST |
| Pickup address | One address, same state as GST registration | Store and pickup details | Pickup address for courier |
| Verification | GST check up to 72 hours | Not confirmed from Flipkart's own pages | Catalogue goes live 72 hours after upload |
| Joining fee | None shown on registration page | None stated | None |
GSTIN or exemption: the first fork
Amazon's registration guide says a valid GST number is mandatory for non-exempt products. Sellers of only GST-exempt goods, such as books, can pick an exemption option and enter PAN details instead. If you later start selling taxable goods, you must register and give Amazon your GSTIN.
Meesho is the platform built around the other route. Its seller page lets you register with a GSTIN or an Enrolment ID/UIN. Meesho announced in October 2023 that non-GST sellers could start selling from 1 October 2023, and said their products are shown only within the seller's state.
Flipkart is the unclear one. Its own onboarding pages did not load readable text for us on 9 October 2026. Secondary sources say Flipkart requires a GSTIN for every category, with a PAN-only option for books or fully exempt goods. We could not confirm this on Flipkart's site, so check the sign-up screen before you buy stock for Flipkart.
PAN, bank account and address
Use one name everywhere. The PAN, GST registration, bank account and marketplace account name should match exactly. A mismatch is the most common reason a verification fails or a payout stalls. If you are a sole proprietor, the bank account is in your name. If you run a company or LLP, it is a current account in the entity's name.
Amazon requires the pickup address to sit in the state where your GST is registered, and supports only one pickup address per seller account. Amazon also needs at least one listing before the store launches. Easy Ship, where Amazon picks up and delivers, excludes items over 18 kg or over 70 × 70 × 45 cm.
Category approvals: where launches stall
Check these before you pay a supplier.
Brand approval. On Amazon, gated brands and categories ask resellers for invoices from the brand or an authorised distributor, or an authorisation letter from the brand owner. The exact documents vary by country and brand, so read what Seller Central asks for. If you own the brand, a trademark helps. Amazon says an application number may give access to Brand Registry tools, subject to its approval. Flipkart's Brand Assure programme reportedly wants a registered mark, though one secondary source is inconsistent on this. Trade Marks Registry fees are ₹4,500 per class for individuals, startups and MSMEs and ₹9,000 for others, and a mark takes roughly 6 to 18 months to register according to Amazon's seller blog. Our trademark registration service covers the filing.
BIS (Bureau of Indian Standards). Many electronics accessories are on BIS's Compulsory Registration Scheme list. The BIS page we read lists power adapters, power banks, wireless headphones and earphones, and smart watches, among others. BIS also sent notices to Amazon, Flipkart, Meesho and other platforms to list only certified goods where certification is mandatory. Secondary reporting says penalties under the BIS Act 2016 start at ₹2 lakh and can reach ten times the value of the goods, with imprisonment of up to two years in some cases.
FSSAI (Food Safety and Standards Authority of India). Food sellers need an FSSAI registration or licence number, and the marketplace displays it. Which one depends on your size and activity. Secondary sources say food delivered to a customer should have at least 30% or 45 days of shelf life left. We could not confirm on FSSAI's site whether a small marketplace seller needs a licence or only a registration, so check with FSSAI or your state food authority.
Do you need GST to sell online? GST for online sellers
The rule has one default and one exception.
The default is section 24(ix) of the CGST Act. A person who supplies goods through an e-commerce operator that must collect tax at source needs GST registration whatever their turnover. Amazon, Flipkart and Meesho all collect TCS, so this default applies to their sellers. Separately, anyone making inter-state supplies of goods must register from the first sale.
The exception is Notification 34/2023-Central Tax, dated 31 July 2023 and effective 1 October 2023. It exempts a goods seller from compulsory registration if all of these hold:
- Your aggregate turnover is within the normal threshold for your state: ₹40 lakh in most states, ₹20 lakh in some special category states.
- You make no inter-state supply of goods.
- You supply through the operator in only one state or union territory.
- You hold a valid PAN.
- You declare your PAN, address and state on the GST portal and receive an enrolment number, one per state.
Services are not covered. The enrolment number stops being valid from the date you get a regular registration.
Decision rule: which route fits you
| Your situation | What to do |
|---|---|
| You plan to ship across states | Register for GST first |
| You sell taxable goods on Amazon or Flipkart | Register; both effectively require a GSTIN |
| You sell goods in your own state only, under the threshold, on Meesho | The enrolment route can work |
| You want to claim input tax credit | Register; unregistered sellers cannot claim it |
| You expect to cross the threshold in 6 months | Register now and avoid a rushed switch |
| You sell services | Register if your turnover requires it |
The enrolment route has a cost. You cannot claim input tax credit, you cannot sell outside your state, and any cross-state order breaks the exemption. If an order does go out of state, you have made an inter-state supply without registration. One secondary source cites a penalty of ₹10,000 or the tax evaded, whichever is higher, under section 122.
Registration timing and the 2025 simplification
GST registration has no government fee. A secondary source puts the standard timeline at about seven working days after Aadhaar authentication. Rule 14A, effective 1 November 2025, offers a three-working-day route, but it is meant for suppliers whose self-declared monthly output tax is up to ₹2.5 lakh on supplies to registered persons (B2B). Two sources describe it as B2B-focused, so a seller of consumer goods on a marketplace should not count on it. Our GST registration service handles the application and the portal queries.
Composition scheme
Sources conflict here. A practitioner article says that since October 2023 a composition dealer may supply goods through an operator, intra-state only. Another source says marketplace sellers cannot use composition. We could not settle this from the official text, and composition limits your input tax credit anyway. We do not recommend it for a marketplace seller who is growing.
GST rates for the three examples below
The 22 September 2025 changes cut apparel and footwear to 5% up to ₹2,500 per piece or pair, and 18% above that. The threshold follows the sale value, not the printed MRP, and one article warns against assuming MRP alone sets the rate. Packaged namkeen, bhujia, biscuits, dry fruits and similar foods moved to 5%. For chargers and mobile accessories we assumed 18%, but we could not confirm the rate in the sources we read. Check your HSN code on the GST portal.
GST on marketplace fees is an input credit
The marketplace charges you 18% GST on its fees. If you are a regular taxpayer, that GST is input tax credit, so you should leave it out of your cost. If you sell 5% GST apparel, the credit from fees and purchases can be larger than your output tax. The credit then carries forward. We show this in the worked example.
Documents required to sell online in India
For a sole proprietor, plan on these:
- PAN and Aadhaar of the proprietor.
- A passport-size photo and proof of your place of business, such as a utility bill or a rent agreement with the owner's consent.
- Bank proof: a cancelled cheque or a statement.
- A working mobile number and email.
- Your GSTIN certificate, or an enrolment number under Notification 34/2023.
For a partnership, LLP or company, add the entity PAN, the deed or incorporation certificate, the authorised signatory's PAN and Aadhaar, a board resolution or authority letter, and a digital signature certificate for companies and LLPs for GST registration. Category documents come on top: a trademark application or certificate, brand authorisation, an FSSAI number, or BIS registration.
Keep scans clear and under about 1 MB each. One secondary source says self-attested files are typical for Flipkart. Udyam (MSME) registration is free and optional, but it is worth doing early because the 2026 amendment asks sellers to supply any central government identification number, with GSTIN and MSME number as examples.
Choosing your legal entity before you register
Your first GST registration is tied to your PAN. So the entity you pick decides who owns the GSTIN, the bank account, the brand and the tax liability. Our wider comparison is in private limited vs LLP vs OPC vs partnership. Here is the seller-specific view.
| Entity | Fits when | Watch out for |
|---|---|---|
| Sole proprietorship | You test a few products, alone, with low cash at risk | Unlimited personal liability; brand is not a separate asset |
| Partnership | Two people split work and stock | Unlimited liability; deed must be right |
| LLP | Two or more founders who want limited liability and lighter compliance | Compliance filings even with low sales |
| Private limited company | You will raise money, hire, or build a brand | Mandatory annual audit and filings |
| OPC | One founder who wants a company | Conversion rules as you grow |
A five-question decision framework
- Could a bad batch or a legal claim ruin you? Food, electronics and cosmetics carry product liability. If yes, move up from a proprietorship.
- Will you take outside money in 18 months? If yes, a private limited company saves a later conversion.
- Is the brand the asset? File the trademark in the name of the entity that will own the business. Moving a trademark later means an assignment and fresh marketplace approvals.
- Are you an individual below ₹5 lakh of annual marketplace sales? Only individuals and HUFs get the TDS exemption up to ₹5 lakh. Companies, LLPs and firms have no such threshold.
- Do you want to avoid filing costs at this stage? A proprietorship is cheapest to run. Add up the cost before you decide.
If you want the cheapest start, begin as a proprietor on your own PAN with a GSTIN, and switch once sales and risk justify it. If you already know you will scale, use the quote calculator to price the entity you need. Whichever you pick, keep the entity name identical on the GST certificate, the bank account and each seller account.
The first 60 days, day by day
This is the sequence we would follow. The dates are guides: category approvals are the part you cannot control.
- Day 1 to 3: choose product, entity and first marketplace. Check the product against the BIS list, the FSSAI rule and brand gating before you commit stock money. Confirm the GST rate by HSN code. Decide your entity using the framework above.
- Day 3 to 10: apply for GST and open the bank account. File the GST application. While you wait, open a current account (or a dedicated savings account for a proprietor) in the exact registered name. Apply for Udyam registration, which is free.
- Day 8 to 14: start the marketplace account and verification. Create the seller account, enter the GSTIN or enrolment number, bank and pickup details. Amazon's GST check takes up to 72 hours. Apply for any brand or category approval now, because these can take longer than the account itself.
- Day 10 to 20: build your first 10 to 20 listings. Use clear images, correct HSN and GST rate, country of origin, weight and dimensions. On Amazon, also add barcodes or request an exemption. Add the best-before date for food and the BIS or FSSAI numbers where needed.
- Day 15 to 25: price from costs, not from competitors. Use the worked example below. Build a cost sheet per product: purchase price, packaging, platform fees, shipping, returns reserve and ads. Set a floor price.
- Day 20 to 30: test the physical flow. Pack three sample orders. Check weight and volumetric weight (length × width × height in cm ÷ 5,000 on the platforms we read). Choose Easy Ship or self-ship on Amazon, and the equivalent options elsewhere.
- Day 25 to 40: first orders. Ship inside the dispatch window. Late dispatch and seller cancellations now carry fees. Record each order, each invoice and each return in a sheet or in your books.
- Day 35 to 45: first payout and first GST cycle. Meesho pays on the 7th day after delivery. Amazon makes funds eligible 7 days after delivery. Match each payout to its orders. If you registered for GST, file GSTR-1 by the 11th and GSTR-3B by the 20th of the following month, even if the numbers are small.
- Day 45 to 55: check TCS and the first tax credits. After the platform files its GSTR-8 (due by the 10th), look for the TCS credit on the GST portal and match it to your settlement report. Note the TDS shown in your settlement reports for later matching.
- Day 55 to 60: review real unit economics. Replace every assumption with actual shipping, return and ad costs. Drop products that lose money. Decide whether to add a second marketplace. If you plan a brand, file the trademark now.
Our bookkeeping and accounting work for sellers starts exactly here, with settlement-to-bank matching, so month-end does not become a pile-up.
The real fee stack: e-commerce seller fees in 2026
Every order carries up to seven layers of cost. The first four are on the fee card. The rest are not.
| Layer | What it is | Notes |
|---|---|---|
| Commission or referral fee | Percentage of price | Now zero on much of the catalogue |
| Fixed or closing fee | Per order, by price band | Flipkart charges on delivered orders |
| Shipping or weight fee | By weight, zone and pincode | Higher of actual or volumetric weight |
| Collection or payment fee | Percentage on some platforms | Flipkart lists a prepaid and COD fee |
| GST on all fees | 18% | Credit for a registered seller |
| Returns and penalties | Reverse shipping, write-offs, cancellation fees | Often the largest layer |
| Ads and discounts | Sponsored listings, coupons | Optional on paper; common in practice |
What is published and what changed in 2026
Amazon has expanded zero referral fees. Its March 2026 announcement says products priced under ₹1,000 in more than 1,800 categories now carry zero referral fees, covering over 12.5 crore products from 16 March 2026. It also cut Easy Ship fees by more than 20% for products under ₹300. Examples in the release include t-shirts, shoes, earphones, sarees, and fashion jewellery.
Two later changes pushed costs the other way, according to trade press. Amazon raised closing fees by ₹1 for products up to ₹500 and ₹3 above that, from 7 September 2026. It also introduced a seller-cancellation fee from 17 August 2026 for Easy Ship and Self Ship sellers. The fee is 10% of order value below ₹10,000, 8% for ₹10,001 to ₹50,000, 5% for ₹50,001 to ₹1 lakh and 2% above ₹1 lakh, plus 18% GST. Buyer-requested cancellations are excluded.
Flipkart extended zero commission to all fashion products at every price point on 8 July 2026. Before that, it applied to fashion up to ₹1,000. The announcement does not say what happens to fixed, shipping or collection fees. A trade report, which Flipkart has not confirmed, says Flipkart added penalties from 23 August 2026: ₹30 for late handover, ₹60 for a seller cancellation after the customer order, and ₹90 where both happen.
Meesho states on its seller page that it charges 0% commission across all categories. It covers shipping through its logistics partner and deducts the shipping fee from your payout.
What we could not get from official pages
The platforms' fee cards are in logged-in dashboards, and several of our fetches returned no readable fee text. So for the worked example we used a mix of published numbers and clearly labelled illustrative numbers. Amazon's registration page does give Easy Ship per-delivery charges for standard items under 500 g: ₹27 local, ₹45 regional and ₹65 national. Third-party fee guides differ slightly, for example ₹29 for local. Those guides also differ on whether Amazon's referral fee is computed on the GST-inclusive price. We assumed inclusive, which is the more cautious assumption.
Worked example: per-order profit for three products
The assumptions are illustrative. Your supplier prices, shipping, and return rates will differ. We take a registered seller, claiming GST input credit on fees and purchases, and ignore overheads, income tax, and your own time.
| Assumption | A: Kurta set (Meesho) | B: 65W charger (Amazon Easy Ship) | C: Dry-fruit pack (Flipkart) |
|---|---|---|---|
| Selling price incl. GST | ₹599 | ₹1,299 | ₹1,099 |
| GST rate | 5% | 18% | 5% |
| Price excluding GST | ₹570.48 | ₹1,100.85 | ₹1,046.67 |
| Purchase cost excl. GST | ₹360 | ₹640 | ₹640 |
| Packaging | ₹15 | ₹18 | ₹25 |
| Commission or referral | 0% (published) | 8% = ₹103.92 (illustrative) | 5% = ₹54.95 (illustrative) |
| Closing or fixed fee | none | ₹55 (illustrative) | ₹25 (illustrative) |
| Collection fee | none | none | 2% = ₹21.98 (illustrative) |
| Shipping, each way | ₹80 (illustrative) | ₹65 (published, national, under 500 g) | ₹120 forward, ₹100 reverse (illustrative) |
| Return and RTO rate | 25% | 8% | 6% |
| Goods written off on a return | 15% | 30% | 100% |
Fees are ex-GST. The 18% GST on them is recoverable and is left out of cost.
Per delivered order
| A | B | C | |
|---|---|---|---|
| Price excl. GST | ₹570.48 | ₹1,100.85 | ₹1,046.67 |
| Less purchase cost | ₹360.00 | ₹640.00 | ₹640.00 |
| Less packaging | ₹15.00 | ₹18.00 | ₹25.00 |
| Less platform fees and shipping | ₹80.00 | ₹223.92 | ₹221.93 |
| Contribution per delivered order | ₹115.48 | ₹218.93 | ₹159.74 |
Per returned or RTO order
A returned order loses the shipping both ways, the packaging and the written-off share of goods. For B, the closing fee is also kept by Amazon in our assumption, and the referral fee is refunded. For C, the commission is reversed and the fixed fee is not charged.
| A | B | C | |
|---|---|---|---|
| Shipping and retained fees | ₹160.00 | ₹185.00 | ₹220.00 |
| Packaging | ₹15.00 | ₹18.00 | ₹25.00 |
| Goods written off | ₹54.00 | ₹192.00 | ₹640.00 |
| Loss per returned order | ₹229.00 | ₹395.00 | ₹885.00 |
Per 100 dispatched orders
| A | B | C | |
|---|---|---|---|
| Delivered orders | 75 | 92 | 94 |
| Returned orders | 25 | 8 | 6 |
| Contribution from delivered | ₹8,660.71 | ₹20,141.33 | ₹15,015.25 |
| Loss on returns | ₹5,725.00 | ₹3,160.00 | ₹5,310.00 |
| Profit per 100 orders | ₹2,935.71 | ₹16,981.33 | ₹9,705.25 |
| Profit per order dispatched | ₹29.36 | ₹169.81 | ₹97.05 |
| As % of selling price | 4.9% | 13.1% | 8.8% |
The kurta's 15% return write-off and the dry-fruit pack's full write-off show a rule: the more a returned unit is worth, the more each return costs. Food returns are rarely resaleable.
How sensitive each product is
| Case | A: Kurta | B: Charger | C: Dry fruit |
|---|---|---|---|
| Lower return rate | 15%: ₹63.80 per order (10.7%) | 5%: ₹188.23 (14.5%) | 3%: ₹128.39 (11.7%) |
| Base case | 25%: ₹29.36 (4.9%) | 8%: ₹169.81 (13.1%) | 6%: ₹97.05 (8.8%) |
| Higher return rate | 35%: minus ₹5.09 (minus 0.8%) | 15%: ₹126.84 (9.8%) | 12%: ₹34.37 (3.1%) |
| Base returns plus ads at 6% (A) or 8% (B, C) of sales | ₹3.69 (0.6%) | ₹88.79 (6.8%) | ₹18.34 (1.7%) |
Three lessons come out of this. First, zero commission does not mean high margin. The kurta pays no commission and still lives or dies on shipping and returns. Second, ads can erase the profit. At 8% of sales, ads cut the dry-fruit pack's profit from ₹97.05 to ₹18.34 per order. Third, one return wipes out the contribution of two to five delivered orders (₹229 against ₹115.48 for the kurta, ₹885 against ₹159.74 for the dry-fruit pack), so a pack-quality and sizing fix pays quickly.
What this means for GST
On the kurta, output GST is ₹28.52 per delivered order. Input credit on the purchase is ₹18.00 and on fees ₹14.40. So credit exceeds output tax by ₹3.88 per order and carries forward. On the charger, output GST is ₹198.15 and credit is ₹155.51 (₹115.20 on the purchase and ₹40.31 on fees), leaving about ₹42.65 to pay in cash before TCS credit. On the dry-fruit pack, credit again exceeds output tax, by about ₹19.61. Sellers of 5% goods often hold a credit balance.
A month of cash flow for the kurta seller
Assume 40 dispatches a day for 30 days: 1,200 dispatches, 900 kept and 300 returned.
- Sales excluding GST: ₹5,13,429. Output GST: ₹25,671.
- Platform fees and shipping: ₹1,20,000 ex-GST, with ₹21,600 GST credit.
- Purchases: 945 units, including write-offs of returned units, giving ₹17,010 of GST credit.
- Total credit: ₹38,610, so you pay no GST in cash and carry ₹12,939 forward.
- TCS of 0.5% is about ₹2,567 and TDS of 0.1% is about ₹513, both held for later credit.
- Working capital: you pay a supplier about 7 days before dispatch, delivery takes 4 days and payout comes 7 days later. That is 18 days at ₹15,000 a day of stock and packaging cost, or about ₹2,70,000 tied up.
TCS and TDS on e-commerce sellers: how the credits work
Two different deductions hit a marketplace seller. People confuse them.
| GST TCS | Income-tax TDS | |
|---|---|---|
| Law | Section 52, CGST Act | Section 194-O, now 393(1) Table 8(v) |
| Rate | 0.5% | 0.1% |
| Base | Net taxable value (sales less returns, excl. GST) | Gross amount of sales |
| Who deducts | The marketplace | The marketplace |
| Exemption | None for sellers | Individual or HUF up to ₹5 lakh |
| Return filed by platform | GSTR-8 by the 10th | Quarterly TDS return |
| Where you see it | GST portal, TCS credit section | Form 26AS and AIS |
| How you use it | Offsets GST payable; refund if surplus | Credit against income tax in your ITR |
GST TCS: rate and credit
Section 52 requires the operator to collect tax at source on the net value of taxable supplies made through it, which is taxable supplies less returns in the month. The rate fell from 1% to 0.5% under Notification 15/2024-Central Tax, dated 10 July 2024. GSTN's advisory says the old 1% rate applied to 1 to 9 July 2024 and the new rate from 10 July. The split is 0.25% CGST plus 0.25% SGST, or 0.5% IGST.
The platform deposits the tax and reports it in GSTR-8 by the 10th of the next month. Then it shows up for you. A secondary source says you will find it on the GST portal under a TCS and TDS credit received section. You check it against your settlement report and accept it. The accepted amount moves to your electronic cash ledger. It offsets your GST payable. If the balance keeps growing, you may claim a refund. Sources differ on whether the entry appears in GSTR-2A or GSTR-2B. Look on the portal rather than assuming.
On ₹50 lakh of net taxable sales a year, TCS at 0.5% is ₹25,000. At the old 1%, it was ₹50,000.
Why credits go missing:
- You gave the platform the wrong GSTIN, or a different state's GSTIN.
- The platform filed GSTR-8 late, or reported the supply in the wrong period.
- Returns did not reduce the base.
- You booked TCS as an expense instead of claiming it as credit.
Reconcile each platform separately every month. Then raise a ticket with the platform if the portal figure differs from your settlement report.
Income-tax TDS: from 194-O to 393
For payments made before 1 April 2026, the provision was section 194-O of the Income-tax Act 1961. The Income-tax Act 2025 applies from 1 April 2026 for tax year 2026-27 onwards. One secondary source places the new provision at section 393(1), Table Sl. No. 8(v). We could not check the Act's text on the official portal, so cite the section from the Act itself when a notice mentions it.
The rate is 0.1% of the gross amount of sales or services. It was 1% before 1 October 2024. A resident individual or HUF is not subject to TDS if gross sales through the platform in the year are up to ₹5 lakh and PAN or Aadhaar is furnished. Other persons have no threshold. A higher rate applies in some cases where PAN is missing, so keep your PAN correct on every account. We could not confirm the exact no-PAN rate in the new Act.
CBDT Circular 20/2023 of 28 December 2023, issued under the old Act, set the following working rules. We found them in law-firm summaries and could not confirm whether they carry over unchanged:
- If GST is shown separately in the invoice and TDS is deducted when the platform credits you, the base excludes GST. If TDS is deducted on earlier payment, it applies to the full amount.
- Fees charged to the buyer, such as shipping or packing, are part of the gross amount if invoiced to the buyer.
- Seller-funded discounts reduce the base. Platform-funded discounts do not.
Claiming the credit
TDS credit works through your income tax return. The platform deposits TDS and files its quarterly return. After that, the deduction appears in Form 26AS and AIS, often 30 to 60 days after the actual deduction according to one source. You claim it as tax paid in your ITR. If the credit is more than your tax, you get a refund.
Match each platform's TDS total with its TAN entries in 26AS before you file. If an entry is missing, check whether the quarter has been filed, then check that your PAN is correct on the account, and then raise a ticket. Do not claim a credit that is not in 26AS.
Presumptive tax: a check before you choose
Under the old Act, the presumptive scheme for business was section 44AD. One source maps it to section 58(2) of the Income-tax Act 2025: a limit of ₹2 crore turnover, or ₹3 crore if cash receipts are no more than 5%, with deemed profit at 8%, or 6% for digital receipts. If you declare less than the deemed rate and your income is above the basic exemption limit, books and an audit are needed, and you lose the scheme for five years. In our kurta example the margin before overheads is about 5% of price, so check the actual margin before you choose the scheme.
Settlement cycles and the cash-flow gap
The official statements are short.
- Meesho: payment into your bank account on the 7th day after delivery, including COD orders.
- Amazon: the FAQ says payment is eligible 7 days after the order is delivered, and proceeds are deposited every 7 days, including pay-on-delivery orders.
- Flipkart: we could not read the official settlement terms. Secondary sources describe a 7-day cycle counted from dispatch, or a seller-tier table running from about 2 to 15 business days. They disagree with each other.
Secondary sources also say new Amazon sellers face a reserve and longer cycles, one citing a 100% reserve in the first 14 to 30 days. We could not confirm this on Amazon's pages. Ask in Seller Central before you plan your first month.
How to size your working capital
Use this rule: working capital is daily stock cost multiplied by (days from paying supplier to dispatch, plus days to deliver, plus days to payout). In the kurta example that is ₹15,000 × (7 + 4 + 7) = ₹2,70,000. Add the cost of returned stock you cannot resell and the first month's ad budget. Also remember that platforms hold 0.5% TCS and 0.1% TDS: on ₹5,13,429 of monthly sales that is about ₹3,080, which is small but is real cash you will see only later.
GST is also a timing item. The platform pays you the GST-inclusive price less fees, but you owe GST on the 20th of the following month, net of credit. Keep the GST portion aside until you have filed.
Returns and RTO: the biggest swing in your P&L
Returns come in two kinds. RTO (return to origin) is when the parcel never reaches the buyer: refused, wrong address, no one at home. A customer return is when the buyer receives the order and sends it back.
Logistics blogs quote return rates of 25% to 40% for fashion and 8% to 15% for electronics accessories, with COD RTO of 20% to 40% in high-return categories. These figures are uncited, so treat them as ranges to test against your own data, not as facts. Your platform dashboard will show your real rate within the first month.
What you can control:
- Description and sizing. One article attributes 22% of returns to products looking different from their page. Use accurate photos, size charts and weight.
- COD risk. Offer a small prepaid discount where the platform allows it.
- Address checks. Confirm serviceability and addresses before dispatch.
- Pack quality. Pack and photograph the product before dispatch, as proof for any damage claim.
- Return processing. Check returned items quickly and relist what is resaleable.
Rules on cancellations are also tightening. Amazon's August 2026 fee applies to seller cancellations and auto-cancellations after you miss the 24-hour confirmation window. On a ₹1,299 order, the 10% fee is ₹129.90 plus 18% GST, or ₹153.28. Meesho changed its returns process in 2023 to add video verification and a 7-day window for sellers to raise claims, according to a news report from that year. Check current claim windows in your supplier panel.
The Consumer Protection (E-Commerce) Amendment Rules 2026
The Department of Consumer Affairs notified these rules on 9 September 2026. They amend the Consumer Protection (E-Commerce) Rules 2020 and take effect on 1 January 2027. One summary gives the notification as G.S.R. 789(E). A law-firm summary says platforms need not apply the changes to sales before 1 January 2027, including 2026 festive sales.
Most new duties fall on the platform, but the platform will pass them on to you through listing fields, seller policies and takedown rules. Here is what matters for sellers.
| Rule (as summarised) | What it means for you |
|---|---|
| Rule 6(5)(d), replaced | Give the platform country of origin, best-before or use-before date, return, refund, exchange and warranty terms, delivery details, return shipping cost and payment modes |
| Rule 6(5)(j), new | Supply any central government ID number, such as GSTIN or MSME registration number, for display |
| Rule 4(13), new | A discount must show the "prior price", the lowest price on the platform in the 30 days before the announcement |
| Rule 4(14), new | The seller's name must appear on the invoice in the same font size as the platform's name |
| Rule 5(3)(a) | Seller website and email, where available, are displayed |
| Rule 5(3)(f) | Platforms publish their main ranking parameters |
| Rule 4(12), new | Sponsored listings must be clearly marked |
| Rule 4(6) | Imported goods must show importer details and the full country of origin |
| Rule 4(15), new | Platforms must run a yearly dark-pattern audit and display a compliance certificate |
The change that will touch most sellers is the 30-day prior-price rule. If you raise the MRP before a sale, then cut the price, the "was" price shown will be the lowest price in the previous 30 days, not your inflated figure. Build your price history now. Fix your listing data before 1 January 2027: country of origin, expiry dates, return terms, and your GSTIN and Udyam number.
We read these rules through law-firm and news summaries. We could not read the Gazette notification itself, and the summaries do not state penalty amounts. They say contraventions after 1 January 2027 attract the Consumer Protection Act 2019. Separately, one summary says the Legal Metrology country-of-origin filter requirement applies from 1 July 2027.
Which marketplace first? A decision rule
- You are unregistered, in one state, selling low-priced goods under the threshold: Meesho is the only one of the three whose official page openly offers an enrolment route. Expect to cap your sales at your own state.
- You sell fashion at a decent margin and can handle returns: Flipkart's zero commission across fashion and Amazon's zero referral under ₹1,000 both apply. Compare shipping and fixed fees on your own items.
- You sell branded or higher-ticket electronics accessories: Amazon, with BIS registration done before you list and brand approvals in hand.
- You sell packaged food: Check FSSAI first, then compare Amazon and Flipkart for shelf-life rules and returns handling. Food returns are usually a total loss.
- You are stocking before demand is proven: Start with one marketplace and 10 to 20 products. A second marketplace doubles reconciliation work.
You can sell on all three with one GSTIN per state. The Meesho non-GST route and a GSTIN route cannot both be active for the same state: once you hold a regular registration, the enrolment number stops being valid.
For selling without holding stock, supplier-ordered models carry separate GST and consumer-law questions that we cover in our dropshipping guide.
Compliance calendar for a marketplace seller
| When | What | Notes |
|---|---|---|
| 10th of each month | Marketplace files GSTR-8 | You check TCS credit afterwards |
| 11th of each month | GSTR-1 (monthly filers) | Marketplace sales, by invoice |
| 20th of each month | GSTR-3B and tax payment | Use cash-ledger TCS and ITC |
| QRMP filers | IFF 13th; PMT-06 on 25th; quarterly GSTR-1 on the 13th; quarterly GSTR-3B on 22nd or 24th | Rajasthan is in the 24th group |
| Every quarter | Platform files TDS return; check 26AS and AIS | Lag of 30 to 60 days per one source |
| 31 December after the year | GSTR-9 annual return | Mandatory above ₹2 crore per one source |
| ITR for FY 2025-26 | 31 August 2026 for non-audit business filers (ITR-3, ITR-4) | Audit-case dates differ across sources |
| Before FSSAI expiry | Renew at least 30 days before | ₹100 a day late fee per one source |
| 1 January 2027 | Consumer Protection (E-Commerce) Amendment Rules start | Audit listings in December |
Late fees for GSTR-1 and GSTR-3B are ₹50 a day (₹20 for nil returns), capped at ₹5,000 for turnover up to ₹1.5 crore and ₹10,000 above it, according to the compliance calendar we read. Interest on unpaid tax is 18% a year. If you registered, you must file returns even in months with no sales. Our GST return filing and GST compliance services handle the monthly cycle, and the annual return sits under business income tax return filing.
Mistakes that cost money
- Shipping one order out of state under the exemption. The enrolment route covers only same-state supplies. A single inter-state order means you should have registered. A secondary source cites a section 122 penalty of ₹10,000 or the tax evaded, whichever is higher, apart from tax and interest.
- Entering the wrong GSTIN or state on the platform. TCS credit does not land. On ₹50 lakh of annual sales, that is ₹25,000 of cash credit stuck.
- Pricing without a returns line. In our example, the kurta swings from ₹63.80 per order at 15% returns to minus ₹5.09 at 35%.
- Treating GST on fees as a cost. In the kurta month, ignoring the credit on fees overstates your costs by ₹21,600.
- Booking TCS as an expense. It is a credit. An expense booking silently throws away 0.5% of net taxable sales.
- Listing BIS-registrable electronics without registration. You risk takedowns and, as reported, fines from ₹2 lakh up to ten times the goods' value under the BIS Act 2016.
- Buying stock before brand or category approval. Stock for a gated brand cannot be listed. Your cash stays in cartons.
- Cancelling orders yourself. Amazon's 10% fee on orders below ₹10,000 is heavy. On the ₹1,299 charger, ₹153.28 including GST takes about 70% of the ₹218.93 contribution.
- Skipping nil returns. A nil GSTR-3B still costs ₹20 a day if late, as per the calendar source.
- Running ads before you know your margin. At 8% of sales, ads turned the dry-fruit pack from ₹97.05 to ₹18.34 per order.
- Inflating MRP before a sale. From 1 January 2027 the 30-day prior price shows the real lowest price, which can make your discount look fake.
- Opening the account in the wrong name. Moving a brand or GSTIN later means new verification on every platform.
Frequently asked questions
How do I sell on Amazon India as a new seller?
Create a seller account at the Amazon.in seller site with your mobile number and email, then enter your GSTIN, bank details, a store name and one pickup address in the state of your GST registration. Amazon says GST verification can take up to 72 hours and that you must add at least one listing before the store launches. Choose Easy Ship or Self Ship, apply for any category or brand approval, and list your first products. Listing is free and fees apply when you receive an order.
Can I sell on Amazon, Flipkart or Meesho without a GST number?
Only in narrow cases. Amazon's page allows it for sellers of GST-exempt goods such as books. Meesho accepts an Enrolment ID/UIN from sellers who qualify under Notification 34/2023: goods only, one state, no inter-state sales, turnover within the threshold. Flipkart reportedly requires a GSTIN for all categories except books or fully exempt goods, but we could not confirm it on Flipkart's own pages. If you ship across states, you need a GSTIN from the first sale.
What is the Meesho seller registration process?
Sign up on the supplier panel with your mobile number and email. Enter your GSTIN or Enrolment ID/UIN, link an active bank account, add a store name and pickup address, and upload your catalogue. Meesho says catalogues go live 72 hours after upload. It charges 0% commission and pays on the 7th day after delivery. Non-GST sellers are covered for deliveries within their state.
What documents are required to sell online in India?
For most sellers you need PAN, a bank account in the same name, proof of business address, a mobile number and email, and a GSTIN. Proprietors add Aadhaar and a photo. Firms, LLPs and companies add the entity PAN, the deed or incorporation certificate, signatory identity and an authority letter. Some categories need more, such as an FSSAI number, BIS registration or brand authorisation.
What are the e-commerce seller fees on Amazon and Flipkart?
Both charge some mix of referral or commission, a fixed or closing fee, a shipping or weight fee, and 18% GST on fees. In 2026 Amazon charges zero referral fees on products under ₹1,000 in 1,800+ categories, and Flipkart charges zero commission on all fashion. Closing fees, shipping and returns still apply. The exact amounts vary by category, price, weight and seller tier, so use the fee calculator in your dashboard.
What is TCS on e-commerce sellers and do I pay it?
TCS (tax collected at source) is 0.5% of your net taxable sales, collected by the marketplace under section 52 of the CGST Act and deposited with the government. It is not an extra tax on you. It lands in your electronic cash ledger and offsets GST you owe, or can be refunded if it builds up. You need a correct GSTIN on the platform for the credit to reach you.
How much TDS do marketplaces deduct from sellers?
The rate is 0.1% of gross sales, down from 1% before 1 October 2024. Under the Income-tax Act 2025, the provision is section 393(1), Table 8(v), from 1 April 2026, replacing section 194-O. A resident individual or HUF with gross sales up to ₹5 lakh in the year, and PAN or Aadhaar on file, is not subject to it. The deduction shows in Form 26AS and you claim it in your income tax return.
How long does it take to get paid by Amazon, Flipkart and Meesho?
Meesho pays on the 7th day after delivery. Amazon's FAQ says payment is eligible 7 days after delivery and deposited every 7 days. Flipkart's official terms were not readable for us, and secondary sources differ. Expect around 11 days from dispatch to cash on Meesho in our example, and plan more for new Amazon accounts, where reserves are reported.
Do I need FSSAI to sell food online?
Yes, you need an FSSAI registration or licence number, and marketplaces display it on food listings. The right one depends on your size and activity, which we could not confirm for small marketplace sellers. Secondary sources say food must reach the buyer with at least 30% or 45 days of shelf life left, and that selling without the required certificate can bring penalties up to ₹5 lakh. Check the category rules in your seller dashboard.
Do I need a trademark to sell on Amazon or Flipkart?
Not to start, unless your brand or category is gated. A trademark is needed for brand-owner tools. Amazon says an application number may give access to Brand Registry tools, subject to approval, and reports about 6 to 18 months for registration. Flipkart's programme reportedly wants a registered mark, though a secondary source contradicts itself. File early if the brand is your asset, using our trademark registration service.
Which is better for a beginner: Amazon, Flipkart or Meesho?
It depends on product and registration. Meesho suits low-price goods and has an official enrolment route for same-state sellers. Flipkart now has zero commission on all fashion. Amazon has zero referral fees under ₹1,000 and strong tools for branded goods. Start with one marketplace and 10 to 20 products, and run the per-order calculation before you scale.
Can I sell on all three with one GSTIN?
Yes. A GSTIN belongs to your PAN and state, not to a marketplace. You can use the same GSTIN on all three, as long as the pickup address sits in the state of that registration. If you store stock in another state later, for example in a fulfilment centre, you may need an additional registration there. Check this with a GST professional before you move stock.
What do the new E-Commerce Rules 2026 change for sellers?
From 1 January 2027, sellers must supply more listing information, including country of origin, expiry dates and return terms, plus any central government ID such as GSTIN or MSME number. Platforms must show the prior price on discounts, which is the lowest price in the previous 30 days. Invoices must show the seller's name as prominently as the platform's. Penalty amounts were not stated in the summaries we read.
What to do next
- Decide your entity and product category this week, and check BIS, FSSAI and brand rules before you pay a supplier.
- Apply for GST and Udyam, and open a bank account in the exact registered name.
- Build a cost sheet for each product using the example above, with your own fees, shipping and return rate.
- Start with one marketplace and 10 to 20 listings, and review your real numbers on day 60.
- Put the monthly GST dates and the TCS and TDS checks in a calendar.
If you want help with GST registration, monthly returns or the bookkeeping that ties payouts to your books, contact RegisCorp. This post is general information, not legal or tax advice, so confirm your own facts with a professional before you act.
Sources and what we could not verify
Sources we relied on
- Amazon India seller site: seller registration guide and seller FAQ (sell.amazon.in), read on 9 October 2026.
- Amazon India press release on zero referral fees, March 2026.
- Amazon India seller blog on trademark registration (sell.amazon.in), for trademark fees and Brand Registry.
- Meesho supplier page, "How it works", and Meesho's October 2023 announcement on non-GST sellers.
- Flipkart announcement on zero commission in fashion, 8 July 2026.
- BIS Scheme II (Registration Scheme) product list.
- GST portal and CBIC notifications: Notification 34/2023-Central Tax, Notification 15/2024-Central Tax, Rule 14A of the CGST Rules, GSTN advisory on GSTR-8 changes (gst.gov.in, cbic-gst.gov.in).
- Income Tax Department portal for the Income-tax Act 2025, section 393 and Form 26AS.
- Department of Consumer Affairs: Consumer Protection (E-Commerce) Amendment Rules 2026, read through law-firm and news summaries (AZB & Partners, FoxMandal, Mondaq, Taxheal).
- Secondary sources for the Income-tax Act 2025 section mapping and presumptive taxation (TDSMAN, Taxmann), and for fee guides and trade-press reports on 2026 fee changes (Global Websters, Novadata, The Logical Indian).
What we could not verify
- Flipkart's own onboarding, fee and settlement pages: they returned no readable text, so Flipkart's GSTIN rule, fee card and payout timing rest on secondary sources that disagree.
- Amazon's full referral and closing fee schedule, and whether referral fee is calculated on a GST-inclusive price. The fee figures in our worked example are labelled illustrative.
- Amazon's closing fee rise from 7 September 2026 and the 17 August 2026 cancellation fee, and Flipkart's reported August 2026 penalties: trade press only.
- Meesho shipping charges and its current returns claim windows.
- Whether new Amazon sellers face a payout reserve in India.
- The text of Income-tax Act 2025 section 393(1) Table 8(v), the no-PAN rate, and whether Circular 20/2023 applies unchanged under the new Act.
- Whether TCS credit appears in GSTR-2A or GSTR-2B, and the GSTR-3B table used.
- Whether marketplace food sellers need an FSSAI licence or only a registration, and the FSSAI shelf-life rule from FSSAI itself.
- BIS penalty amounts (secondary reporting), and the GST rate on chargers.
- Composition scheme eligibility for marketplace sellers: sources conflict.
- The Gazette text of the E-Commerce Amendment Rules 2026, the G.S.R. number, and penalty amounts.
- ITR dates for audit cases: sources conflict (31 October versus 21 November 2026).
- Late fee caps, GSTR-9 threshold and the section 122 penalty: from secondary calendars.