# D2C & Shopify Store Accounting

> D2C brands selling from their own website collect money through payment gateways (net of fees and in batches) and cash-on-delivery remittances from courier partners (often weeks later, net of charges). Good D2C accounting matches every order to gateway or COD settlements, books returns and RTOs, captures logistics and marketing invoices with GST credit, and charges the right GST by customer state — since sales to other states are IGST.

Practice: E-commerce Seller Services — https://www.industax.com/services/ecommerce/

Unlike marketplaces, there is no TCS cushion — the brand handles all GST itself. Place of supply is the delivery address, so a single-state brand selling nationally mostly charges IGST.

We integrate Shopify or WooCommerce exports with your accounting software, reconcile gateways and COD partners, and produce contribution-margin reports by SKU and channel.

## Key facts

| Item | Detail |
| --- | --- |
| GST | IGST for inter-state customers, CGST+SGST within the state |
| Gateway settlements | Net of fees, batched |
| COD | Remitted by courier partners after delivery |
| Returns/RTO | Credit notes and stock adjustments |

## Who needs this

- D2C brands on Shopify or WooCommerce
- Brands selling on own site and marketplaces
- Founders tracking unit economics

## What's included

- Monthly bookkeeping
- Gateway and COD reconciliation
- GST returns
- Unit-economics reports

## Documents

- Store order exports
- Gateway and courier remittance reports
- Bank statements
- Purchase and ad invoices

## Process

1. **Connect** — Store, gateway and courier data mapped.
2. **Reconcile** — Orders matched to settlements.
3. **Report** — GST filed and margins reported.

## FAQs

### Do D2C sites have to deduct TDS on payment gateway fees?

Gateway fees are usually commission or service charges on which TDS may apply depending on the arrangement; GST on the fees is claimable as input credit.

### Is GST payable on COD orders that are returned?

If the invoice was issued, issue a credit note on return to reduce the GST liability in the period the return is accounted.

### Should Meta and Google ad spends attract GST?

Ads bought from foreign entities are imports of services; registered businesses pay GST under reverse charge and claim the credit.

## Official sources

- GST portal: https://www.gst.gov.in/

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Canonical page: https://www.industax.com/services/ecommerce/d2c-shopify-accounting
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.