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Sellers book only the net marketplace payout as sales, which understates revenue and GST turnover and loses the TCS and TDS credits.
Record the gross sale against a marketplace receivable, then clear the receivable with the bank credit plus separate lines for commission and fees with GST, GST TCS and Section 194O TDS.
Ledgers for marketplace receivable, sales, output GST, marketplace fees, input GST, GST TCS receivable, TDS receivable and returns; order ID kept on every entry.
A marketplace receivable account that closes at nil or at delivered-but-unpaid orders, with TCS and TDS credits ready to match against official statements.
Book the full sale as revenue and the marketplace (Amazon, Flipkart, Meesho and so on) as a customer who owes you money. When the payout lands, clear that receivable with the bank credit and post commission, GST TCS and TDS as separate lines. Never book only the net payout as your sales.
Why not just book the net payout as sales?
Because the payout is not your sale. It is your sale minus several deductions, and each deduction means something different:
- Commission and fees are an expense, and the GST on them is usually input tax credit.
- GST TCS at 0.5 percent of the net taxable value (under Section 52 of the CGST Act 2017, reduced from 1 percent from 10 July 2024) is a GST credit you can use.
- Section 194O TDS at 0.1 percent (reduced from 1 percent from 1 October 2024) is income-tax paid on your behalf.
If you book only the net amount, three things go wrong: your sales figure is lower than the invoices you issued, so your GSTR-1 and books disagree; the TCS and TDS credits never reach a ledger, so you may not claim them; and fees disappear without a GST input claim.
What are the entries for one order?
Take one order. Taxable value ₹1,000, GST at 5 percent ₹50, so the invoice is ₹1,050. The marketplace charges an illustrative commission and shipping fee of ₹150 plus 18 percent GST of ₹27. (Commission rates vary by category and marketplace; these figures are for illustration only.)
| Step | Debit | Credit | Amount |
|---|---|---|---|
| 1. Sale on delivery | Marketplace receivable | Sales ₹1,000 and output GST ₹50 | ₹1,050 |
| 2. Commission and fees | Marketplace fees ₹150 and input GST ₹27 | Marketplace receivable | ₹177 |
| 3. GST TCS (0.5 percent of ₹1,000) | GST TCS receivable | Marketplace receivable | ₹5 |
| 4. Section 194O TDS (0.1 percent of ₹1,000) | TDS receivable | Marketplace receivable | ₹1 |
| 5. Bank receipt | Bank | Marketplace receivable | ₹867 |
| Return (if any) | Sales returns and output GST | Marketplace receivable | Reverse step 1 |
Check: ₹1,050 − ₹177 − ₹5 − ₹1 = ₹867. After step 5 the marketplace receivable for this order is nil.
In Tally Prime or Zoho Books, create the marketplace as a ledger under Sundry Debtors, and keep the order ID in the narration so you can trace each line later.
How do I know the marketplace account is clean?
At month end, the marketplace receivable balance should equal orders you have delivered but the marketplace has not yet paid, plus anything it is holding (for example, a reserve or a disputed return). If the balance is higher, you have missed a deduction or a payout. If it is lower or negative, you have probably booked a payout twice or missed a sale.
A simple monthly routine:
- Download the marketplace’s settlement report for the month.
- List unpaid delivered orders by order ID.
- Compare that list’s total with the ledger balance.
- Chase any difference before closing the month.
Worked example: one week of orders
A seller has 40 orders in a week worth ₹48,000 including GST. Three are returned, worth ₹3,600. Net sales including GST: ₹48,000 − ₹3,600 = ₹44,400, of which the taxable value is about ₹42,286.
The settlement report shows:
- Commission, fixed fees and shipping with GST: ₹5,727 (illustrative)
- GST TCS at 0.5 percent of ₹42,286: ₹211
- Section 194O TDS at 0.1 percent of ₹42,286: ₹42
Payout: ₹44,400 − ₹5,727 − ₹211 − ₹42 = ₹38,420. That is the bank credit.
Entries: debit the receivable ₹48,000 for sales, credit it ₹3,600 for returns, credit it ₹5,727 for fees, ₹211 for TCS, ₹42 for TDS and ₹38,420 for the bank receipt. The receivable closes at ₹48,000 − ₹3,600 − ₹5,727 − ₹211 − ₹42 − ₹38,420 = nil.
Where do the TCS and TDS credits go next?
The TCS shows on the GST portal after the marketplace files its GSTR-8. The TDS shows in your TDS credit statement (Form 26AS, or Form 168 from tax year 2026-27, where Section 194O maps to payment code 1035 under the Income-tax Act 2025). Match both ledgers every quarter.
What to read next
- Platform settlement decomposition in Google Sheets shows the same split line by line.
- Amazon Pay settlement reconciliation walks through a full settlement.
- Where to see marketplace TDS and TCS on your payouts.
Marketplace settlement reconciliation is on the TransactIG roadmap; see payment gateway reconciliation for where it fits.