Check the latest rules: Rates, thresholds and report formats change, and Amazon and Flipkart rename report columns from time to time. This guide reflects the position at the time of writing (November 2026). Confirm with the latest notifications or your accountant before filing.
Why a bank match is not enough
Marketplaces do not pay you the sale value. Each payout is the sale value less commission, fixed and shipping fees, collection fees, refunds, GST TCS and income-tax TDS, plus or minus adjustments from earlier periods. If you book only the bank credit, your sales, expenses and tax credits are all understated. Worse, you will not know whether a missing amount is a return, a fee, a hold or an error. Reconciliation means every rupee of every order can be traced from the customer’s payment to your bank statement. For the tax side of the story, read our guide to Amazon seller accounting in India, and for the warehouse and registration side, our post on GST Rule 14B for e-commerce sellers.
Which reports to download
| Marketplace | Report | Use it for |
|---|---|---|
| Amazon | Settlement (flat file V2) report from the Payments section of Seller Central | Every transaction in a settlement period: orders, refunds, fees, adjustments and the total deposited |
| Amazon | Fee invoices and tax documents | GST on fees, so that you claim input tax credit only on invoices that appear in GSTR-2B |
| Flipkart | Settlement report (and the order-level payment report) from Seller Hub | Per-order sale value, commission, fixed fee, shipping and collection fees, TCS and TDS |
| Both | Sales and returns reports, your bank statement, GSTR-1 and GSTR-2B, Form 26AS | Cross-checks in the monthly and quarterly tie-outs |
Always download by settlement period, not by order date. A payout can contain orders from earlier weeks, and that is where most mismatches come from.
Key columns to look at
The Amazon flat file lists one line per transaction. The columns you will use most are transaction-type (Order, Refund, and so on), amount-type and amount-description (principal, tax, commission, shipping and similar), amount (signed: positive for money in, negative for money out), posted-date, sku and order-id. Filter or pivot on the order-id and amount-description to see each order’s full story.
The Flipkart settlement report is organised by order item. Look for the sale amount, commission, fixed fee, shipping fee, collection fee, GST on fees, TCS and TDS columns, together with the payment reference or UTR that ties the settlement to your bank.
Set up the ledgers in Tally
- Sundry debtor: one ledger per marketplace (for example “Amazon Receivable” and “Flipkart Receivable”). This is the control ledger that must clear to zero after each settlement.
- Sales: separate sales ledgers by marketplace and by GST rate, so that reports tie to GSTR-1.
- Duties and taxes: output CGST, SGST and IGST, and input CGST, SGST and IGST for the GST on fees.
- Indirect expenses: commission, fixed or closing fee, shipping or fulfilment fee, collection fee and advertising, kept as separate ledgers.
- Current assets: “GST TCS Receivable” and “TDS Receivable (e-commerce)”, and a “Marketplace Reserve” ledger for amounts held back.
- Sales returns: a credit-note ledger for each marketplace, with the matching GST reversal.
Worked example
Suppose a seller makes sales of ₹6,00,000 (taxable value) in a month, all at 18% GST, with no returns. The customer pays ₹7,08,000 including ₹1,08,000 GST. For simplicity, assume a commission of ₹72,000, shipping and other fees of ₹30,000, and 18% GST on those fees (₹18,360).
| Item | Working | Amount (₹) |
|---|---|---|
| Customer payments (sale plus GST) | 6,00,000 + 1,08,000 | 7,08,000 |
| Commission and fees | 72,000 + 30,000 | (1,02,000) |
| GST on fees | 18% of 1,02,000 | (18,360) |
| GST TCS | 0.5% of 6,00,000 | (3,000) |
| Income-tax TDS | 0.1% of 6,00,000 | (600) |
| Bank payout | 5,84,040 |
Entry 1 (sales): Debit Amazon Receivable ₹7,08,000; credit Sales ₹6,00,000 and output GST ₹1,08,000.
Entry 2 (settlement journal): Debit Bank ₹5,84,040, Commission ₹72,000, Shipping and other fees ₹30,000, Input GST ₹18,360, GST TCS Receivable ₹3,000 and TDS Receivable ₹600 (total ₹7,08,000); credit Amazon Receivable ₹7,08,000.
The receivable ledger is now zero. If it is not, the difference is exactly what you have to investigate. Note that TDS is generally worked out on the sale amount excluding GST where GST is shown separately, and GST TCS is worked out on the net taxable value after returns, so the two bases are not always identical. Check how your marketplace has calculated each on its certificates.
Returns, reserves and unmatched items
- Returns and refunds: pass a credit note against the marketplace ledger for each refund line, with the GST reversed in the right period. A refund posted after the month end belongs in the month it is reported, so show it separately instead of changing the earlier month.
- Reserves and holds: amounts held back are a balance-sheet receivable, not an expense. Move them to the reserve ledger and clear them when released.
- Adjustments and reimbursements: lost or damaged stock reimbursements are credits that reduce cost or count as income. Book them with the reference given in the report.
- Unmatched items: if the receivable does not clear, filter the report by order-id and look for refunds with no matching sale, fees charged without a sale, and orders paid in a later settlement.
A reconciliation sheet layout
Before posting to Tally, many sellers summarise each settlement in a spreadsheet. A simple layout works well: one tab for the raw marketplace file, one pivot by order-id and amount-description, and one summary tab with these rows: gross sales, GST collected, refunds, commission and fees, GST on fees, TCS, TDS, reserves, net payout, and bank credit. A final check row shows net payout minus bank credit, which should be zero. The summary tab gives you the exact figures for the Tally journal in the worked example above.
Monthly and quarterly tie-outs
- Sales: total sales and returns in Tally should equal the figures you will report in GSTR-1.
- GST on fees: input GST booked should match the fee invoices that appear in GSTR-2B. Do not claim credit on invoices that are missing.
- GST TCS: the operator reports TCS in GSTR-8, normally filed by the 10th of the following month, and it is credited to your electronic cash ledger once filed. Compare the ledger credit with your TCS receivable.
- TDS: each quarter, compare the TDS receivable with the credit shown against your PAN in Form 26AS (Part F) or your AIS, which comes from the platform’s quarterly TDS return.
- Bank: match each deposit to a settlement using the payment reference or UTR.
For current TDS and TCS rates across all sections, see our TDS and TCS rate chart for tax year 2026-27. If you use Vyapar alongside Tally, our post on Vyapar and Tally Prime integration covers the common pitfalls.
Common mistakes
- Booking only the bank payout, so sales, fees, TCS and TDS never appear in the books.
- Posting one entry per order instead of one summary entry per settlement, which makes the ledger unreadable and slow.
- Treating TCS or TDS as an expense instead of a receivable.
- Claiming input tax credit on fees before the invoice shows in GSTR-2B.
- Forgetting returns that cross month ends, or reserves released in a later period.
- Never comparing TDS in the books with Form 26AS, so missing credits go unnoticed.
FAQs
How do I reconcile an Amazon settlement report in Tally?
Book the gross sales and GST against an Amazon receivable ledger, then pass one settlement journal that debits bank, commission and fees, input GST, TCS receivable and TDS receivable and credits the receivable. The receivable should then be zero.
Is GST TCS an expense for the seller?
No. It is tax collected at source by the operator and is credited to your electronic cash ledger after the operator files GSTR-8. Record it as a receivable until the credit appears.
Is TDS on e-commerce sales an expense?
No. It is an advance tax credit. Record it as a receivable and claim it through your income-tax return, after matching it with Form 26AS or your AIS.
How often should I reconcile marketplace settlements?
Every settlement cycle if you can, and always before filing GSTR-1 and GSTR-3B each month.
Why does my bank credit not match the settlement total?
Common reasons are reserves held back, adjustments carried from earlier periods, refunds processed after the report cut-off, or a payout covering more than one settlement. Use the payment reference to match each deposit.
Can I use the same method for Flipkart, Meesho or Myntra?
Yes. The ledger structure and the single settlement journal are the same for any marketplace. Only the report columns differ, so map them to the same summary rows.
Tip: not sure which GST code applies to your product? Search it with our free HSN and SAC code finder.
Call +91-85888-99292 or email contact@metaccounts.in for a free consultation. See our accounting and GST services.
Sources: GST Council FAQs on TCS, Taxscan on GSTR-8 and TCS and TDSMan on TDS under section 393(1). The worked example uses illustrative numbers. Rates, thresholds and report formats can change, so please check the latest notifications. This post is for general information and is not tax or legal advice.