26AS Turnover vs GST Turnover Mismatch Ecommerce: Why It Happens
For an ecommerce seller, a 26AS turnover vs GST turnover mismatch is usually normal. The section 194-O amount in Form 26AS is the gross sale value the marketplace recorded, often before returns and sometimes with GST. Your GST returns show taxable value after returns. Explain the gap in a short reconciliation, and do not copy either figure blindly.
- The section 194-O amount in Form 26AS is the gross sale value on which the marketplace deducted 0.1% TDS.
- Your GST returns show taxable value: the price without GST, after returns.
- A CBDT circular lets the marketplace include GST in some cases, and adjust returns only against later sales.
- In the income tax return, report the turnover in your books and keep a one-page reconciliation.
In this guide
Why are the two numbers different at all?
Because they measure different things. Section 194-O of the Income-tax Act asks the marketplace (the law calls it the "e-commerce operator") to deduct tax on the "gross amount" of your sales through it. The GST law asks you for the taxable value of your supplies, which is the price before GST, less the returns for which credit notes were issued. Nobody designed the two to match.
Where does the department see them together? Form 26AS now carries only tax deducted and collected. Your GST turnover sits in the Annual Information Statement (AIS), under the "Other Information" tab, picked up from your GSTR-3B. So both figures are in front of the officer, and in front of you. How the two statements differ is explained in AIS vs 26AS.
What pushes the 26AS figure above the GST figure?
Most of the reasons come from CBDT Circular 20 of 2023, which tells marketplaces how to work out the gross amount.
| Reason | What the rule says | Effect |
|---|---|---|
| GST in the base | If GST is shown separately and tax is deducted when the amount is credited to you, TDS is on the value without GST. If it is deducted at payment because payment came first, it is on the whole amount. | 26AS higher by the GST |
| Returns | Tax already deducted on a returned order is not reversed. Where the buyer is refunded, it may be adjusted against your next sale in the same financial year. | 26AS higher if returns were not adjusted, such as late March returns |
| Shipping, packing and convenience charges | Charges billed to the buyer are part of the gross amount. | 26AS can be higher if a charge is not on your own invoice |
| Discount funded by the marketplace | A discount you give reduces the base. A discount the marketplace funds does not. | 26AS can be higher |
| Timing | TDS follows credit or payment, whichever is earlier. GST follows the invoice. | Either side, around 31 March |
| Sales outside marketplaces | Your own website, offline sales and stock transfers between your own GSTINs are in GST returns but not under section 194-O. | GST figure higher |
So is a higher 26AS figure a sign that you under-reported sales in GST? Not by itself. It becomes a problem only when you cannot explain it.
A worked example
Kavita sells kitchenware, taxed at 18%, on two marketplaces. These are her figures for financial year 2025-26.
- Taxable value in her GST returns, after returns: Rs 45,00,000.
- Returned orders that the marketplaces did not take out of their TDS figure: Rs 3,50,000.
- The second marketplace deducted tax on the full invoice value of Rs 17,70,000, which is Rs 15,00,000 plus GST of Rs 2,70,000. GST sitting in the base: Rs 2,70,000.
- Section 194-O amount in Form 26AS: Rs 45,00,000 + Rs 3,50,000 + Rs 2,70,000 = Rs 51,20,000. TDS at 0.1%: Rs 5,120.
The gap of Rs 6,20,000 is fully explained by two lines. Kavita reports turnover of Rs 45,00,000, because her books record GST separately as a liability, and claims the TDS of Rs 5,120.
What if she had copied Rs 51,20,000 into her return? Under the presumptive scheme at 6%, she would have paid tax on an extra income of Rs 37,200 that she never earned.
What should you do about the mismatch?
- Download Form 26AS and the AIS from the income tax e-filing portal. Note the section 194-O amount for each marketplace.
- Total the taxable value in your GSTR-1 from April to March, for every GSTIN under your PAN. Note the tax separately.
- Pull the sales and returns reports from each marketplace for the same twelve months.
- Write the bridge from one number to the other: GST in the base, returns, charges, marketplace-funded discounts, timing, and sales outside marketplaces.
- Report the turnover from your books in the income tax return, and claim the TDS as it appears in Form 26AS.
- If an AIS entry is not yours or is duplicated, submit feedback on that entry in the AIS. If the marketplace reported a wrong amount, ask it to correct its TDS statement.
- Keep the working with your return papers. If the department asks, this one page is your answer.
The rest of the return is covered in ITR for ecommerce sellers, and the deduction itself in TDS under section 194-O.
When is the gap a real problem?
When the bridge does not close. Three causes are common.
- A marketplace or a second GSTIN was left out of GSTR-1. Fix the GST side first. See how to correct missed sales in GSTR-1.
- You sold on a marketplace before you took GST registration, so there is TDS but no GST return.
- The 26AS entry belongs to someone else, or appears twice.
How much does it matter? The TDS is only 0.1%, so the money in the entry is small. The turnover behind it is not. An unexplained gap between your return, the AIS and Form 26AS can lead to a message or a notice asking you to explain, and tax on the difference if you cannot.
The mistake sellers usually make
The first is "fixing" one record to match the other. Sellers raise their GSTR-1 to the 26AS figure, or cut their income tax turnover to the bank payouts. Both are wrong. Each record should be right by its own rule, with the difference explained.
The second is claiming less TDS because the turnover reported is lower. The credit follows what was deducted in your name. The treatment of TDS on orders that were later returned is a point to confirm with your tax expert.
For sales from 1 April 2026, the same deduction sits in section 393(1) of the Income-tax Act, 2025. The reasons for the gap do not change.
Sources
How AprilTax can help
A Tax Expert at AprilTax files your income tax return for a fixed fee, from Rs 1,499, fully online. For a marketplace seller the Tax Expert works out the turnover, matches it with your GST returns and Form 26AS, and claims the section 194-O TDS. See income tax return filing.
Frequently asked questions
Why is the turnover in Form 26AS higher than in my GST returns?
Which turnover should I report in my income tax return?
Does section 194-O TDS apply on the amount with GST?
Does the marketplace reduce TDS when a customer returns an order?
Can I still claim the full TDS shown in Form 26AS?
Where does the income tax department see my GST turnover?
What if a 26AS or AIS entry is not mine?
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