# Marketplace Settlement Reconciliation

> Marketplace payouts arrive net of commissions, shipping, fixed fees, returns, penalties and taxes, often in batches that don't match order dates. Settlement reconciliation matches every order and return to its payout, books fees as expenses with their GST credit, tracks unpaid orders and claims, and reconciles GST TCS and 194-O TDS — so revenue in your books equals what you reported for GST.

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

Unreconciled sellers commonly overpay GST (reporting cancelled or returned orders as sales), miss input credit on marketplace fees, and never claim lost-in-transit or damaged-return reimbursements.

We reconcile from marketplace reports monthly, raise claims for discrepancies, and give you order-level profitability after all fees.

## Key facts

| Item | Detail |
| --- | --- |
| Matches | Orders, returns, fees, payouts, TCS and TDS |
| GST credit | On commissions and fees invoiced by the marketplace |
| Typical leakages | Unclaimed returns, wrong fees, missed credits |
| Frequency | Monthly, before GST filing |

## Who needs this

- Sellers on multiple marketplaces
- Sellers with high return rates
- Brands wanting SKU-level profitability

## What's included

- Monthly reconciliation
- Claims for discrepancies
- GST-ready sales register
- Profitability reports

## Documents

- Marketplace settlement and order reports
- Bank statements
- GST returns

## Process

1. **Import** — Marketplace reports collected.
2. **Match** — Orders, returns and payouts reconciled.
3. **Report** — Books, GST and profitability aligned.

## FAQs

### Why doesn't my GSTR-1 match marketplace TCS data?

Usually because of returns, cancellations or timing — the marketplace reports net taxable supplies in GSTR-8 by month, while sellers often report gross orders. Reconciliation fixes the mismatch before it becomes a notice.

### Can I claim GST on Amazon or Flipkart fees?

Yes. Marketplaces issue tax invoices for commissions and fees; if they show your GSTIN and appear in GSTR-2B, you can claim the credit.

### How far back can reconciliation go?

As far as the marketplace reports are available; claims for some discrepancies have time limits set by each marketplace.

## Official sources

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

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Canonical page: https://www.industax.com/services/ecommerce/marketplace-settlement-reconciliation
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.