Revenue Leakage Calculator: How Much Are You Losing Each Year?
One combined estimate of the money leaking out of your reconciliation — unrecovered TDS credits, GST input tax credit at risk, and fee errors inside platform settlements. Adjust the inputs to your scale; the calculation updates instantly and every assumption is stated below. Runs entirely in your browser.
Your business profile
Revenue on which your customers deduct TDS before paying you — services, contracts, commission, rent. Set to zero if your receipts carry no TDS.
Gross monthly volume settled to you by marketplaces, aggregators, OTAs, and payment gateways — Amazon, Flipkart, Zomato, Swiggy, MakeMyTrip, Razorpay, PayU, Cashfree.
Purchases on which ITC could in principle be claimed — exclude exempt supplies and blocked credits under Section 17(5).
Share of suppliers whose GSTR-1 reflects in your GSTR-2B by the cut-off. Without structured reconciliation this typically lands at 70–80%.
How the estimate decomposes
The headline is the sum of four components. Each maps to a leakage class from the seven classes of reconciliation leakage.
| Step | Description | Value |
|---|---|---|
| 1 | TDS credit leakage — 0.2% of TDS-bearing revenue (2% of an assumed 10% deduction pool) | ₹0 |
| 2 | Annualised platform settlement volume (monthly × 12) | ₹0 |
| 3 | Platform fee leakage — 0.2% of settled volume (documented recovery range 0.1–0.3%) | ₹0 |
| 4 | Total ITC entitlement (purchases × 14% blended rate) | ₹0 |
| 5 | Permanent ITC leakage — off-time share × 30% non-filers | ₹0 |
| 6 | Interest on lagged ITC — off-time share × 70% late filers × 9% × 90/365 | ₹0 |
| 7 | Estimated annual revenue leakage (1 + 3 + 5 + 6) | ₹0 |
Refine each component with the dedicated estimators: the TDS Mismatch Estimator and the ITC Leakage Calculator model supplier counts, lag windows, and analyst hours that this combined view simplifies.
Methodology and assumptions
TDS credit basis
Unreconciled TDS credits run at roughly 2% of the TDS deducted on receivables for services businesses; on a 10% average deduction rate that is 0.2% of TDS-bearing revenue — ₹20 lakh on ₹100 crore. Monthly Form 26AS reconciliation recovers these inside the deductor's correction window.
Platform fee basis
Industry estimates put marketplace fee and settlement errors at 2–3% of gross payment volume; line-level fee reconciliation typically recovers 0.1–0.3% of processed volume. The calculator uses the 0.2% recovery midpoint — the conservative, defensible figure.
ITC split and carry
Of suppliers missing the GSTR-1 cut-off, 70% are assumed late filers (working-capital carry at 9% blended cost of funds over a 90-day average lag) and 30% permanent leakage (non-filers, composition suppliers, uncorrected GSTIN errors). Blended ITC rate fixed at 14%.
What is deliberately excluded
Short settlements, discount errors, NACH bounce-charge leakage, dispute aging, and penalty interest on late TDS deposit are real leakage classes but cannot be estimated honestly from headline volumes — they require your transaction data. Treat this estimate as a floor, not a ceiling.
This calculator is an estimator, not a measurement of your books. For the regulatory framework refer to Rule 36(4) of the CGST Rules on the GST portal and TDS credit mechanics under Form 26AS.
Related guides
Stop Revenue Leakage
The seven classes of reconciliation leakage, where each occurs, and why audited books still leak.
Reconciliation Software for India
The complete guide — including the ₹28 lakh/year recoverable-value worked example behind this calculator's framing.
ITC Leakage Calculator
The detailed GST view — supplier counts, lag windows, Rule 36(4) mechanics, and analyst hours.
Frequently Asked Questions
What counts as revenue leakage in this estimate? +
Three components, each with a published basis. TDS credit leakage: unreconciled TDS credits run at roughly 2% of the TDS deducted on your receivables — about ₹20 lakh a year on ₹100 crore of TDS-bearing revenue. Platform fee leakage: disciplined fee-level reconciliation of marketplace and gateway settlements typically recovers 0.1–0.3% of processed volume; the calculator uses the 0.2% midpoint. ITC leakage: input tax credit from suppliers who file GSTR-1 late or never, split into permanent loss and working-capital interest under Rule 36(4). Dispute aging, short settlements, and NACH bounce-charge leakage are real but excluded here because they need transaction-level data to estimate honestly.
How is the headline number calculated? +
Headline = TDS credit leakage + platform fee leakage + permanent ITC leakage + working-capital interest on lagged ITC. TDS leakage is 0.2% of TDS-bearing revenue (2% of an assumed 10% average deduction pool). Fee leakage is 0.2% of annualised settlement volume. ITC splits your off-time supplier share 70/30 into late filers (interest carry at 9% over a 90-day lag) and permanent non-filers, on a 14% blended ITC rate. The breakdown table below the calculator shows every step.
How accurate is this estimate? +
It is an estimator built on documented industry ranges, not a measurement of your books. Real exposure depends on your deduction sections, platform mix, supplier compliance, and ledger hygiene — businesses with strong line-level controls sit below these ranges, and businesses that close on aggregate balances sit above them. For a measured number, a TransactIG discovery walkthrough runs the same classification on your actual settlement and ledger data.
Why are TDS, ITC, and platform fees the three components? +
They are the three largest structural leakage channels in Indian finance that can be estimated from headline volumes alone. Each maps to a deduction-heavy flow: customer payments arriving net of TDS, purchases carrying ITC that depends on supplier filings, and platform settlements arriving net of commission and fees. Other classes — short settlements, discount errors, NACH bounce charges, penalty interest — are material but only quantifiable from your transaction data.
How does TransactIG recover the leakage this calculator estimates? +
TransactIG matches every settlement, deduction, and credit at line level using a multi-pass engine that lifts automated match rates from a 51% baseline to 88%, classifies each variance into one of seven leakage classes, and tracks classified rupees through recovery in the Discovered Money view — within the platform dispute windows and statutory correction deadlines that make recovery possible. Configuration takes 2–4 weeks per industry preset.
The estimate is a floor. Your data has the real number.
TransactIG runs the same classification on your actual settlement and ledger data — every variance assigned to a leakage class, every recoverable rupee tracked in the Discovered Money view. Implementation 2–4 weeks, ISO 27001:2022, AWS Mumbai.