Meesho seller guide
Meesho GST and TCS for Sellers: What Is Deducted and How to Claim It
Quick answerWhen you sell on Meesho with a GST number, Meesho collects TCS (tax collected at source) of 1% on the net taxable value of your sales and deposits it with the government. It reports that amount in its own return, GSTR-8. The TCS then appears in your GST account, and you can use it to pay your own GST once Meesho has filed that return.
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What TCS on Meesho is
Section 52 of the CGST Act asks every e-commerce operator, Meesho included, to collect tax at source on the sales made through it by registered sellers. The rate is 1% of the net taxable value: 0.5% CGST plus 0.5% SGST when the buyer is in your state, or 1% IGST when the buyer is in another state.
Net taxable value means your taxable sales through Meesho in the month, minus the taxable value of the returns in that month. TCS is not an extra tax on you. It is an advance part of the GST you already owe, collected by the marketplace before the money reaches your bank.
Where Meesho reports your TCS
If Meesho has not filed GSTR-8 yet, or files it late, the credit does not appear on your side until it does. Returns that Meesho processes in a later month can reduce the TCS in that later return.
Meesho collects the TCS from your settlements during the month.
By the 10th of the next month, Meesho deposits it and files GSTR-8, which lists the TCS for each seller GSTIN.
The amount then appears in your GST account on the GST portal, under the TCS credit received by your GSTIN.
You accept the TCS credit there. Once accepted, it reaches your electronic cash ledger and can pay your GST in GSTR-3B.
Which Meesho reports help with GST
The Meesho Supplier Panel has tax and payment reports for each month. Menu names change from time to time, so look for the GST or tax reports section and the payment reports in the panel itself. Download the reports for the same month you are filing.
Keep three things side by side for each month: your own sales total from Meesho, the TCS Meesho shows for you, and the TCS that appears on the GST portal. If the two TCS figures differ, the usual reason is a return or cancellation booked in a different month.
- Your monthly sales and returns from the Meesho tax report.
- The TCS amount Meesho collected for that month.
- The TCS credit shown for your GSTIN on the GST portal.
- Your payment files, to see the TCS line on each settlement. The Meesho seller dashboard reads these files and shows payments by stage.
Common TCS mistakes Meesho sellers make
- Treating TCS as a cost. It is your money: it pays your GST once you accept the credit.
- Not accepting the TCS credit on the GST portal, so it never reaches the cash ledger.
- Comparing a month's TCS with that month's payments only. Returns and RTO can land in a later month.
- Assuming a seller without GST pays TCS. Sellers who sell through an enrolment ID (no GST registration) are outside TCS: Meesho is told not to collect it on their supplies.
When to ask a tax professional
This guide explains how TCS moves between Meesho, the GST portal and your returns. Your GST rate, your filing frequency and how you book returns depend on your own business, so a chartered accountant or GST practitioner should check your filings. Rules and rates can change: confirm the current position on the GST portal and in your Meesho Supplier Panel.
Frequently asked questions
How much TCS does Meesho deduct?
1% of the net taxable value of your sales through Meesho in the month: 0.5% CGST and 0.5% SGST for buyers in your state, or 1% IGST for buyers in other states.
How do I claim the TCS Meesho deducted?
After Meesho files GSTR-8 for the month, the TCS shows on the GST portal for your GSTIN. Accept it there; it then reaches your electronic cash ledger and can pay the GST in your GSTR-3B.
Is TCS deducted for sellers without GST?
No. Sellers who sell through an enrolment ID instead of a GST registration are outside TCS under the 2023 notifications for unregistered e-commerce suppliers.