GST TCS Reconciliation — Unstick Your Working Capital
By GrowwwTech··3 min read
The TCS Problem for Marketplace Sellers
Under GST law, ecommerce operators (Amazon, Flipkart, Meesho, etc.) must collect 1% TCS (Tax Collected at Source) on the net value of goods sold through their platform.
On paper, this is a credit you can claim when filing your GST returns. In practice:
Marketplace TCS data doesn’t match your GST returns — Different periods, different classifications, rounding differences
The credit sits unclaimed for months — Until you reconcile and claim it in GSTR-2B
At ₹10L/month marketplace sales, that’s ₹10,000/month stuck — Over a year, ₹1.2L in working capital trapped in the GST system
Ensure TCS credit is entered in Table 4 of GSTR-3B
Pro Tips
Reconcile monthly, not quarterly — Monthly reconciliation catches issues early. Quarterly means 3 months of compounded mismatches.
Use reconciliation software — Tools like ClearTax, Zoho Books, or TallyPrime have auto-reconciliation features that match marketplace TCS with GSTR-2B.
Keep a TCS tracker spreadsheet — Log: marketplace, month, TCS amount on certificate, TCS amount in GSTR-2B, claimed in GSTR-3B, status (matched/pending/disputed).
File on time — Late GSTR-3B filing means late TCS credit claim, which means longer working capital lockup.