Ecommerce Payment Reconciliation for GST: Sales to Bank Credit

Ecommerce payment reconciliation means proving, month by month, that the money a marketplace paid into your bank equals your sales less returns, fees, TCS and TDS. Do it before you file, because your GSTR-1 must carry the sales figure, not the payout, and each deduction is claimed in a different place.

Why does the bank credit never match your sales?

A marketplace collects the full price from the buyer and pays you later, after taking out what it is owed and what the law tells it to hold back. Three terms first:

• Settlement report (also called payment report): the marketplace's statement of each payout, order by order.
• TCS: tax collected at source under section 52 of the CGST Act. The operator collects it on the net value of your taxable supplies, that is, sales less returns in the month. The rate is 0.5% in total.
• TDS: income tax deducted under section 194-O of the Income-tax Act, 1961 (section 393 of the Income-tax Act, 2025 from tax year 2026-27), at 0.1% of the gross amount of sales.

How do you reconcile a month, step by step?

1. Collect the papers for one month. You need the sales report, the settlement report, the fee invoices and your bank statement. Our guides show where to download the sales reports for Amazon, Flipkart and Meesho.
2. Fix the sales figure first. From the sales report, total the taxable value and GST of invoices, then the same for returns. Sales less returns is what goes into GSTR-1.
3. Tie the settlement report to the sales report. Match by order ID. Orders sold this month but paid next month are timing gaps. List them and carry them forward. Do not move the sale to the month of payment.
4. Check fees. Add up commission, shipping and other fees in the settlement report. Compare the GST on them with the fee invoices and with your GSTR-2B, the statement of credit that the portal generates on the 14th of the next month.
5. Check TCS. The operator files GSTR-8 by the 10th of the next month. Its figures appear under Services, then Returns, then "TDS and TCS credit received". Compare the net value and TCS there with your own sales less returns. Our guide on TCS matching explains the screen.
6. Check TDS. Compare the section 194-O deduction in the settlement report with Form 26AS. It may appear there some time after the month ends.
7. Tie the payout to the bank. Tick each payout against a bank credit.
8. Write down every difference and its reason. A difference with no reason is the one to chase.

A worked example

Meena sells bedsheets taxed at 5% on one marketplace. Her numbers for one month:

Now see where each line lands.

• GSTR-1 shows taxable value Rs 4,50,000 and tax Rs 22,500. Not Rs 3,63,550.
• The operator's GSTR-8 should show net value Rs 4,50,000 and TCS Rs 2,250. Meena accepts that row and Rs 2,250 is credited to her electronic cash ledger.
• The fee invoices should show in GSTR-2B with GST of Rs 16,200.
• In GSTR-3B her tax is Rs 22,500. Assuming the credit is fully eligible and the tax heads allow the set-off, input tax credit covers Rs 16,200. Of the balance Rs 6,300, the cash ledger pays Rs 2,250 and she deposits Rs 4,050.
• Rs 500 should appear in Form 26AS, to be claimed in her income tax return.

The TDS base here is an illustration. Check which amount your marketplace applies 0.1% to. If the payout were Rs 3,55,000 in place of Rs 3,63,550, Meena would have Rs 8,550 to explain: usually an order not yet settled, a fee she missed or a claim under dispute.

What do you do when the numbers do not match?

• Sales in GSTR-8 are higher than yours. Check for a missed report or a second GSTIN. If you left out sales, see how to correct missed sales in GSTR-1.
• TCS was deducted but is not on the portal. The operator may not have filed, or may have used a wrong GSTIN. See TCS credit not reflecting. A wrong row can be rejected, and it goes back to the operator to amend.
• A fee invoice is not in GSTR-2B. Hold that credit and raise it with the marketplace.
• Returns fall in a later month. Report them in the month of the credit note. The article on sales returns in GSTR-1 explains how.

The mistake most sellers make

The common mistake is to treat the bank credit as sales. In Meena's case that would report Rs 3,63,550 where the law needs Rs 4,50,000 of taxable value. The operator has already told the department about Rs 4,50,000 in its GSTR-8, so the gap is visible to the department.

The reverse mistake costs money too: reporting sales correctly but never accepting the TCS row or claiming credit on fees. In this example that is Rs 2,250 and Rs 16,200 left on the table in one month. For the claim steps, read how to claim TCS credit.

Frequently asked questions

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