Every month, Amazon and Flipkart quietly cut 1% from your sales as TCS. Most sellers just ignore it. But this money is yours, sitting safe with the government, and you can get it back.
If you sell ₹1 lakh/month on Amazon, that's ₹1,000 cut every single month. Over a year? ₹12,000 just sitting there unclaimed. This guide shows you exactly how to get it back.
What exactly is GST TCS?
Under Section 52 of the GST Act, every e-commerce platform (Amazon, Flipkart, Meesho) is required by law to cut 1% from its sales and send it to the government on its behalf.
It breaks down like this:
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0.5% CGST + 0.5% SGST for sales within your own state
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1% IGST for sales to customers in other states
Quick Example:
Your total sales (ex-tax): ₹1,00,000
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TCS cut by Amazon (1%): −₹1,000
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Amount paid to you: ₹99,000
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Where is that ₹1,000? → Safe with the government. as advance tax
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That ₹1,000 is NOT gone. It sits in a government account linked to your GSTIN, waiting for you to claim it back
TCS vs TDS: What's the difference?
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TCS (Tax Collected at Source): This is a GST thing. E-commerce platforms collect it from your sales. Claim it every month on the GST portal.
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TDS (Tax Deducted at Source): This is an Income Tax thing. Claim it at year-end when you file your ITR, a completely separate process.
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Today we're only talking about the monthly GST TC.
Why should you claim it every month?
Honestly? Because it's your money and it helps your business breathe better. Here's what you get:
Benefit 1: Pay less GST from your pocket
When you file GSTR-3B, instead of paying the full tax in cash, you can use this TCS credit to offset it. Less cash out = better cash flow.
Benefit 2: Get cash directly into your bank account
If your tax liability is already covered by ITC, the TCS amount moves to your Electronic Cash Ledger. Apply for a refund and get it straight in your bank account.What you need before you start
What you need before you start
Keep these three things ready before you open the GST portal:
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E-commerce sales report: Download the "GST Tax Report" or "TCS Report" from Amazon Seller Central or Flipkart Seller Hub for that month.
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GSTR-1 already filed. Make sure you've already filed your GSTR-1 for that month. Your sales data needs to match what's on the portal.
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GST portal login: Your username and password for www.gst.gov.in, and your registered mobile number for OTP.
How to Claim TCS — Step by Step
This is easier than it looks. Just follow these 8 steps:
Step 1: Log in to the GST portal
Go to www.gst.gov.in, enter your username, password, and captcha, then click Login.
Step 2: Go to Returns Dashboard
From the top menu: Services → Returns → Returns Dashboard. Or click the "Return Dashboard" button right on the homepage.
Step 3: Pick the right month
Select the Financial Year and the month you want to claim TCS for. Hit Search.
Step 4: Open "TDS and TCS Credit Received"
You'll see tiles for GSTR-1, GSTR-3B, and others. Find the tile called "TDS and TCS Credit Received" and click "Prepare Online" below it.
Step 5: Click on "TCS Credit Received" tab
On the next page, several tables appear. Click the one labeled "TCS Credit Received" — that's the one for your e-commerce sales.
Step 6: Check the data (most important step!)
You'll see a list of all platforms that cut TCS from you Amazon, Flipkart, etc. For each one, check: their GSTIN, Gross Value, Return Value, and Net Taxable Value. Cross-check with your downloaded sales report.
Tip: In 99% of cases, this data is auto-filled and correct. But it always takes 30 seconds to verify.
Step 7: Accept all the records
Tick the checkbox next to each operator's row and click Accept. If you don't accept, the money will NOT move to your Cash Ledger. You can reject or modify it if something looks wrong but it's rare.
Step 8: Save and file
Click Save, then go back and click "Proceed to File". Verify the summary, select your authorized signatory, and file using OTP (EVC) or Digital Signature (DSC).
Done! Within minutes, the full amount lands in your GST Electronic Cash Ledger.
What do you do with the money after claiming?
Once it's in your Cash Ledger, you have two good options:
Option A: Use it to pay next month's GST
When you file GSTR-3B, this balance shows up automatically. No need to pay extra from your bank it adjusts on its own.
Option B: Get it refunded to your bank
Go to: Services → Refunds → Application for Refund.
Select "Excess balance in Electronic Cash Ledger", enter the amount, choose your bank, and submit form RFD-01. Money arrives in a few days.
3 Mistakes Sellers Make (And How to Avoid Them)
Mistake 1: Forgetting to track returns (RTO)
Amazon and Flipkart calculate TCS on net sales after deducting returns. But if you forget to add return credit notes in your GSTR-1, your data won't match on the portal. Always reconcile your net sales before filing.
Mistake 2: Skipping monthly claims
Your money doesn't disappear, the government holds it. But every month you delay is money locked up that you could've used for inventory or shipping. Best practice: claim between the 15th–20th of every month, after filing GSTR-1.
Mistake 3: Blindly accepting unknown entries
If you sell on multiple platforms, sometimes unfamiliar operator names appear on the portal. Don't click Accept on entries you don't recognize. Check the GSTIN first, then proceed.
FAQs
Q1: When do Amazon and Flipkart cut TCS, and how much?
They cut 1% on the net taxable value of each order at settlement time. This gets deposited with the government by the 10th of the following month.
Q2: When does TCS credit appear on the GST portal?
Platforms must file their GSTR-8 (TCS return) by the 10th of every month. Your credit shows up in the "TDS and TCS Credit Received" tab from the 11th or 12th onwards.
Q3: If I don't claim for months, will my money disappear?
No, it stays safe with the government. You can claim multiple months together. But your working capital stays locked during that time, which hurts your business cash flow.
Q4: Where does the money go after I accept the records?
The moment you file, the full amount is credited to your GST Electronic Cash Ledger usually within minutes.
Q5: Can I transfer the Cash Ledger balance directly to my bank?
Yes. File form RFD-01 under Services → Refunds → Application for Refund. Select "Excess balance in Electronic Cash Ledger" and your registered bank. Done.
Q6: What about TCS on returned products (RTO)?
Amazon and Flipkart already deduct returns before calculating TCS. The portal shows your net figure. You don't need to do anything extra for this.
Q7: Can I sell on Amazon or Flipkart without a GST number?
If your yearly turnover is under ₹40 lakh (for goods), you can sell within your own state using just an Enrolment ID. But to sell in other states, a GST number is mandatory.
Q8: What about GST on platform fees and commissions?
The 18% GST that Amazon or Flipkart charges on their commissions, delivery, and warehouse fees is available to you as Input Tax Credit (ITC). Claim it in GSTR-3B to reduce your tax liability.
Q9: Is there a penalty for filing this form late?
No official late fee or penalty for the "TDS and TCS Credit Received" form. But file it before the 20th before GSTR-3B so you can use the credit to pay that month's tax.