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E-Commerce GST vs Income-Tax Turnover Reconciler

Tie the year’s marketplace sales in the tax statement to GSTR-8, GST returns and books, and spot unclaimed TCS and TDS.

Reviewed by CA Apurav GargUpdated Calculated in your browser; copied links include your figures

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Note:
Example values — replace with yours.

Marketplace sales for the year

The e-commerce TDS entries, added up for the year.

What the marketplaces reported for GST TCS.

Included in the gross sales above.

Returns or shipments that fall in another year. Can be negative.

Other sales, returns and books

Sales through your own site, after returns.

Distributors, retailers and other sales.

Added up for the year.

Added up for the year.

From the profit and loss account.

Credited to your cash ledger for the year.

Claimed in your income-tax return.

Advanced options: reconciling items

All start at nil — enter your own figures for the year.

Taxed in GST, not revenue in your books.

Post-sale schemes or platform debit notes taken off revenue in your books only.

Net orders invoiced in March GSTR-1 but delivered or settled in April. Can be negative.

Taxed as supplies in GSTR-1 and GSTR-3B, not sales in your books.

Interest on deposits and other income with no GST.

Where a marketplace carried a negative month into GSTR-8.

Your result

Items to look at

2

2 items need a look: gstr-1 differs from gstr-3b (₹8,00,000); gst tcs not claimed (₹15,000).

Expected turnover
₹6,00,00,000
Unexplained books variance
₹0
GSTR-1 vs GSTR-3B
₹8,00,000
GST TCS not claimed
₹15,000
The reconciliation bridge
Step₹ for the year
Gross marketplace sales in Form 168 (AIS) from tax year 2026-27, Form 26AS before that₹5,20,00,000
Less returns and cancellations−₹75,00,000
Less timing adjustments−₹5,00,000
Marketplace net₹4,40,00,000
Add March cut-off₹0
Add GSTR-8 spillover₹0
Expected in GSTR-8₹4,40,00,000
Gap vs GSTR-8₹0
Add own website₹1,60,00,000
Add B2B / offline₹0
Expected turnover₹6,00,00,000
Books net revenue₹6,00,00,000
Unexplained books variance₹0

Differences under ₹1 are treated as rounding.

Warning:
GSTR-1 shows ₹8,00,000 more taxable turnover than GSTR-3B. When the tax on a gap like this is large, the GST portal can send an intimation asking you to pay the difference or explain it within a short time. Check the months behind the gap now.
Books to GST turnover
Step₹ for the year
Books net revenue₹6,00,00,000
Add stock transfers to your other registrations₹0
Add commercial credit notes not adjusted in GST₹0
Add free samples and replacements taxed in GST₹0
Less income outside GST₹0
Add March cut-off₹0
GST turnover from books₹6,00,00,000
GSTR-1 taxable turnover₹6,00,00,000
Still to reconcile₹0

The same steps as the turnover reconciliation in the annual GST reconciliation statement (GSTR-9C).

What this tells you

Your marketplace sales appear in several places: the income-tax statement, the marketplaces’ GSTR-8, your own GSTR-1 and GSTR-3B, and your books. Each counts returns and year-end timing a little differently, so the totals rarely match on first look.

Enter the year’s figures from each source to see what ties, what is explained by returns and timing, and what still needs a look — including GST TCS and e-commerce TDS credits not yet claimed.

Assumptions used

  • The marketplace collects GST TCS of 0.5% on the net taxable value of your sales (0.25% CGST + 0.25% SGST/UTGST within a state, 0.5% IGST between states). No TCS is collected on nil-rated or exempt products (0%). Exports and SEZ supplies are zero-rated, not nil-rated; this calculator does not cover them.
  • The marketplace deducts income-tax TDS of 0.1% on your sales.
  • TDS credit appears in Form 168 (AIS) from tax year 2026-27, Form 26AS before that.
  • All figures are for the same financial year and exclude GST.
  • Marketplace returns and cancellations are included in the gross sales shown in the tax statement.
  • Differences under ₹1 are treated as rounding.
  • Reconciling items under Advanced options start at nil. Stock transfers, commercial credit notes, free samples and replacements, and the March cut-off are added to books revenue; income outside GST is taken off.
  • A March cut-off and returns carried forward in GSTR-8 also change what GSTR-8 should show.
  • Expected credits use the rates shown in Tool Settings; a blank rate shows no expected credit.
Legal references and sources
GST TCS collected by an e-commerce operator
Section 52, CGST Act, 2017 — 0.5% of the net value of taxable supplies (supplies minus returns in the month, excluding GST): 0.25% CGST + 0.25% SGST/UTGST within a state, 0.5% IGST between states, from 10 July 2024 under Notification No. 15/2024–Central Tax dated 10 July 2024 and the corresponding Integrated Tax and Union Territory Tax notifications (1% before). Not collected on exempt or nil-rated supplies; where returns exceed supplies in a month, the negative value is ignored and not carried forward (CBIC TCS FAQs, Q14 and Q20–21).
Effective from 10 Jul 2024 · Last verified 27 Oct 2026 · Official source
Income-tax TDS deducted by an e-commerce operator
0.1% of the gross amount of sales or services: section 194-O of the Income-tax Act, 1961 for amounts credited or paid from 1 October 2024 to 31 March 2026 (reduced from 1% by the Finance (No. 2) Act, 2024); section 393(1), Table Sl. No. 8(v) of the Income-tax Act, 2025 from 1 April 2026. Deducted when the amount is credited or paid, whichever is earlier. 5% where PAN is not furnished (section 397(2); earlier section 206AA).
Effective from 1 Oct 2024 · Last verified 27 Oct 2026 · Official source
Where sellers see TDS credit
Income-tax Rules, 2026, rule 245 — Form 168 is the Annual Information Statement from tax year 2026-27. For FY 2025-26 and earlier, TDS credit shows in Form 26AS and the AIS.
Effective from 1 Apr 2026 · Last verified 27 Oct 2026 · Official source

How this is calculated

  1. Marketplace net = gross marketplace sales in the tax statement − returns and cancellations − timing adjustments.
  2. Expected in GSTR-8 = marketplace net + March cut-off + returns carried in GSTR-8. Gap vs GSTR-8 = expected − GSTR-8 supplies.
  3. Expected turnover = marketplace net + own website + B2B / offline.
  4. Unexplained books variance = expected turnover − books net revenue.
  5. GST turnover from books = books net revenue + stock transfers + commercial credit notes + free samples and replacements − income outside GST + March cut-off. GSTR-1 vs books = GSTR-1 − GST turnover from books. GSTR-1 vs GSTR-3B = GSTR-1 − GSTR-3B.
  6. Expected GST TCS = GSTR-8 supplies × TCS rate. Not claimed = expected − claimed, if above zero.
  7. Expected e-commerce TDS = gross marketplace sales × TDS rate. Not matched = expected − claimed, if above zero.

Terms used here

Worked examples

Example 1: ₹5,20,00,000.00 of marketplace sales in the tax statement

Returns ₹75,00,000.00, timing ₹5,00,000.00, GSTR-8 ₹4,40,00,000.00, own website ₹1,60,00,000.00, books ₹6,00,00,000.00, GSTR-1 ₹6,00,00,000.00, GSTR-3B ₹5,92,00,000.00. TCS claimed ₹2,05,000.00, TDS claimed ₹52,000.00.

  • Marketplace net = ₹5,20,00,000.00 − ₹75,00,000.00 − ₹5,00,000.00 = ₹4,40,00,000.00, matching GSTR-8.
  • Expected turnover = ₹4,40,00,000.00 + ₹1,60,00,000.00 = ₹6,00,00,000.00, matching the books. The ₹80,00,000.00 gross difference is all returns and timing.
  • GSTR-1 is ₹8,00,000.00 more than GSTR-3B — worth a look.
  • GST TCS expected ₹2,20,000.00 at 0.5%; ₹15,000.00 not yet claimed.
  • E-commerce TDS expected ₹52,000.00 at 0.1%; ₹0.00 not matched.

Example 2: books to GST turnover

Books revenue ₹1,50,00,000. Stock transfers to the business’s other GST registrations ₹15,00,000, commercial credit notes not adjusted in GST ₹4,00,000, free samples taxed in GST ₹1,00,000, and ₹2,00,000 of interest on deposits. No March cut-off. GSTR-1 shows ₹1,68,00,000.

  • GST turnover from books: 1,50,00,000 + 15,00,000 + 4,00,000 + 1,00,000 − 2,00,000 = ₹1,68,00,000.00.
  • Still to reconcile against GSTR-1: ₹0.00.

Our Tax Audit & Notices service reconciles marketplace sales, GST returns and books each year.

Questions sellers ask

Why does the marketplace figure in my tax statement not match my books?

The marketplaces report gross sales for e-commerce TDS, before returns and cancellations. Your books record net sales, and some returns or shipments fall in a different year. Take those out and the figures should tie. Statement: Form 168 (AIS) from tax year 2026-27, Form 26AS before that.

What is GSTR-8?

The return a marketplace files for the GST TCS it collects. It shows the net taxable supplies the marketplace made on your behalf, after returns, so it should match your marketplace net figure.

Why compare GSTR-1 with GSTR-3B?

GSTR-1 reports your sales and GSTR-3B is where you pay the tax. A difference across the year usually means a sale was reported in one and not the other, or amended in one month and not the next. It is a common reason for GST notices.

How is the expected TCS and TDS worked out?

GST TCS = GSTR-8 supplies × the TCS rate (0.5%). E-commerce TDS = the gross marketplace sales in the tax statement × the TDS rate (0.1%). If either rate is pending verification, the calculator does not guess the expected credit.

Can the timing adjustment be negative?

Yes. Enter it as positive when sales in the tax statement belong to another year, and negative when this year’s sales show up in next year’s statement.

Want our team to look at these numbers alongside your books?

We keep books, file GST and TDS returns and prepare monthly MIS for D2C and marketplace sellers. Share your figures and we will walk you through what we find.

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Disclaimer

A planning estimate for general information only, based on the figures you enter. It is not professional or tax advice. The TCS and TDS rates used here are not yet verified. Check each difference against the source records before you file or respond to a notice.

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