Question 1

What is Section 194-O TDS, and how does it affect D2C sellers on marketplaces?

Accepted Answer

Section 194-O requires ecommerce operators (Amazon, Flipkart, and similar platforms) to deduct 0.1% TDS on the gross sale value of goods sold through them, before paying out the seller — reduced from 1% with effect from 1 October 2024 (Finance (No. 2) Act, 2024). That deducted amount should show up as a TDS credit against your PAN in Form 26AS/AIS — reconciling what the marketplace actually deducted against what it should have, and against what shows up in your credit, is where sellers most often lose track of money they are owed.

Question 2

How does GST work for sellers on marketplaces like Amazon and Flipkart?

Accepted Answer

Marketplaces are required to collect TCS (Tax Collected at Source) under GST Section 52 — currently 0.5% on the net taxable value of supplies (0.25% CGST + 0.25% SGST intra-state, or 0.5% IGST inter-state), reduced from 1% with effect from 10 July 2024 (CBIC Notification No. 15/2024-Central Tax) — and report it via GSTR-8. As a seller, that TCS should appear in your GSTR-2A/2B as a credit you can claim. Separately, you still file your own regular GSTR-1 and GSTR-3B for output tax on your sales.

Question 3

Is Blinkit/Zepto reconciliation different from regular marketplace reconciliation?

Accepted Answer

Yes. Quick-commerce platforms generally operate on a distribution/inventory model rather than a pure marketplace-commission model, which changes how settlements, returns, and fees are structured and reported compared to Amazon or Flipkart. The settlement report formats, payout cycles, and deduction categories differ enough that they need their own reconciliation workflow rather than being forced into the same template as marketplace sellers.

Question 4

Can I claim GST Input Tax Credit (ITC) on marketplace commission and logistics fees?

Accepted Answer

Generally yes, subject to the usual ITC conditions — a valid tax invoice from the platform/logistics provider, the supply being used for business purposes, and the credit appearing correctly in your GSTR-2B. In practice, matching every commission and logistics-fee line item against GSTR-2B across multiple marketplaces each month is one of the more error-prone parts of ecommerce bookkeeping.

Question 5

How should COD orders and RTO (Return to Origin) shipments be accounted for?

Accepted Answer

COD collections typically reach your bank well after the order and delivery date, so cash and revenue recognition need to be tracked separately rather than assumed to match. RTO shipments should be booked as a reversal of the original sale (not just an expense), and often carry a separate courier RTO penalty that many sellers don't reconcile against — quietly eating into margin if left unchecked.

Question 6

Do you provide payment reconciliation services?

Accepted Answer

Yes, payment reconciliation is available as an add-on to your retainer, run by our team. It requires third-party reconciliation software, which the client purchases and licenses separately — that software cost is not included in our retainer fees.

Parameter	ecomca	Traditional CA Firm
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