E-commerce Taxation and Compliance for Platforms and Sellers
Online selling changes the way tax works: multiple states, marketplace fees, returns, TCS and TDS credits. Our e-commerce practice, led by CA Monika Goyal, supports both e-commerce platforms and the vendors who sell on them.
For sellers and vendors
- GST registration – the requirement depends on the type of goods, whether supplies are inter-state, and the platform. Sellers that keep stock in marketplace warehouses in other states generally need an additional place-of-business registration in each of those states.
- Marketplace reconciliation – matching settlement reports with sales, returns, commissions and fees, and with the TCS and TDS credits shown in your GST and income tax records.
- Correct GST returns – reporting of supplies made through e-commerce operators, credit notes for returns and cancellations, and input tax credit on platform fees.
- Accounting and MIS – product-wise and channel-wise profitability, inventory, and receivables from marketplaces.
- Exports and cross-border selling – Letter of Undertaking, export documentation, foreign remittance compliance and IEC.
- Own-website sellers – payment-gateway reconciliation and GST on your own store.
For e-commerce platforms and operators
- GST compliance of the operator, including collection of tax at source and the related monthly return.
- Tax deduction and collection obligations towards sellers and their reporting.
- Onboarding checks: seller GST and PAN details and reconciliation of payouts.
- Accounting for commission, subscription and logistics income and expenses, and the related GST treatment.
- Structuring and tax planning for platforms with cross-border customers or vendors, and advice on the income tax and GST position of new business models.
Our approach
Every online business is different, so we start with a review of your channels, states of operation and the current registrations, and identify gaps. We then set up a monthly routine: settlement data in, reconciliation, returns filed, and a short report. Our GST return filing and accounting teams work with the e-commerce practice.
Frequently asked questions
Do I need GST registration to sell on Amazon, Flipkart or Meesho?
It depends. Certain sellers, such as those making inter-state supplies of goods or selling specified categories, must register even if their turnover is small, while others below the threshold may be exempt if they only supply within a state through an operator. We check your position and register you correctly.
What is TCS on e-commerce sales and how do I claim credit?
E-commerce operators collect tax at source on the net value of taxable supplies made through them, and report it. The seller can see the amount in the GST records and take credit while discharging its own liability. We reconcile it every month.
Can you help if I sell through my own website and marketplaces?
Yes. We consolidate the sales from each channel, reconcile payment gateways and marketplaces, and prepare the returns.
Do you work with sellers outside Rajasthan?
Yes. GST and income tax compliance is online, and we work with sellers across India.
This page gives general information about Agar & Co. and its services. It is not an advertisement or solicitation, and it should not be treated as professional advice. Rates, thresholds and due dates change from time to time.