GST TCS Section 52 for E commerce: How to Record and Reconcile in BUSY Recom
When you sell through an e commerce platform in India, you need to deal with TCS or Tax Collected at Source under Section 52 of the CGST Act. This blog explains what Section 52 means for sellers on marketplaces, how to record it step by step in your accounting system, and how to reconcile everything using BUSY Recom.
What is GST TCS under Section 52
TCS under GST is a small percentage that e commerce platforms collect on behalf of sellers. Understanding this helps you record and track it correctly.
- Under Section 52, an e commerce operator must collect TCS when it collects payment from buyers on behalf of sellers.
- The rate is one percent on the net value of taxable supplies after deducting returns or cancellations.
- The operator files a monthly return in Form GSTR 8 , and the TCS credit reflects in the supplier’s electronic cash ledger.
Who collects TCS and when
Knowing who is responsible and when the TCS applies helps you maintain accurate records.
- The e commerce operator collects TCS on the net value of sales made through its platform.
- The operator deducts TCS while making payment to the seller.
- TCS is deposited to the government by the 10th of the following month through GSTR 8.
TCS rate and net value base
The rate and calculation base remain uniform across platforms. Recording them correctly avoids future mismatches.
- The TCS rate under GST is one percent of the net taxable value.
- For intra state sales, it is 0.5 percent CGST and 0.5 percent SGST.
- For inter state sales, it is one percent IGST.
- Net value means total taxable supplies minus returns during that month.
How it affects your sales and settlement entries
TCS impacts how your settlements appear from marketplaces. You should post entries in a way that captures every component clearly.
- Record your sale invoice for the full taxable value and applicable GST.
- When settlement arrives, check the statement showing gross value, less fees, less TCS, and net amount credited.
- Record TCS as a receivable, not as an expense, since it gets credited to your cash ledger.
How to post entries in BUSY
Recording TCS properly ensures your GST filings and books stay aligned.
- Create an account for each marketplace under Sundry Debtors or similar.
- Post sales invoices with proper tax breakup and link them to the marketplace.
- When settlement is received:
- Dr Bank for the net amount received.
- Dr Platform Fees for commissions or charges.
- Dr GST TCS Receivable for the TCS amount deducted.
- Cr Marketplace Operator Account for the gross value.
- When TCS credit appears in the GST portal:
- Dr Electronic Cash Ledger GST.
- Cr GST TCS Receivable to clear the balance.
Returns and cancellations
Returns directly affect the TCS base, so they must be adjusted in the same period.
- Issue a credit note for every return or cancellation with tax details.
- The marketplace statement should show the adjusted net value for TCS .
- Confirm that your books match the adjusted value used by the operator in GSTR 8.
Reconciliation workflow
Reconciliation ensures that marketplace data, your books, and the GST portal all show the same TCS figures.
- Compare your monthly marketplace statement with your sales register and settlement entries.
- Match the TCS deducted by the operator with the TCS credited in your electronic cash ledger.
- Cross check GSTR 8 details with your own records for accuracy.
- Adjust any timing differences for returns or settlements that carry forward.
Where BUSY Recom save time
When you sell through multiple marketplaces like Flipkart or Amazon or handle large volumes, manual reconciliation can take hours. BUSY Recom simplifies this by automating the process.
It automatically matches your order data, settlement statements, fees, returns, and TCS deductions from every marketplace. You can view order wise, SKU wise, and date wise details of your sales and TCS deductions. The tool flags mismatched or missing entries, verifies TCS amounts with your cash ledger, and generates clear reports for audit and filing. With BUSY Recom, reconciliation that once took days can be completed in minutes.
Common mistakes and quick checks
Avoiding small mistakes keeps your books and returns error free.
- Treating TCS as an expense instead of a receivable.
- Forgetting to record returns in the same month.
- Not clearing the GST TCS Receivable after the credit appears in the cash ledger.
- Using gross figures instead of net value for TCS calculation.
Month end checklist
Following a consistent checklist keeps reconciliation smooth.
- Download marketplace statements for the month.
- Post all sales, settlements, and TCS entries.
- Verify the TCS credit in the GST cash ledger.
- Clear the GST TCS Receivable ledger.
- Reconcile marketplace, bank, and fee ledgers before closing the books.
Conclusion
GST TCS under Section 52 may look complex, but with clear recording and reconciliation, it becomes simple to manage. Record your sales, post settlements, adjust returns, and verify monthly TCS credits. Use BUSY Recom to automate matching and reporting, save time, and keep your compliance accurate and stress free.
I’m CA Mohammad Abid Khan, a Chartered Accountant based in Varanasi with 10 years of experience. I specialize in GST and Income Tax, helping individuals and businesses stay compliant and optimize their taxes. I hold B.Com and M.Com degrees and enjoy simplifying finance through practical, easy-to-understand content.