Flipkart Seller Tax Guide 2025
GST, TCS, Returns & ITR Filing

1. GST Registration for Flipkart Sellers

Every Flipkart seller must hold a valid GST registration. Flipkart verifies your GSTIN during seller onboarding and will not process payments without it. The registration process is online via gstn.gov.in and takes 7–10 working days.

If you sell in multiple states, you may need separate GST registrations for each state (or register those states as additional places of business under your existing GSTIN).

2. How Flipkart Deducts TCS

Flipkart Internet Pvt. Ltd. is required by law (Section 52 of CGST Act) to collect TCS at 1% on the net taxable value of all supplies made through its platform. This is deducted before your settlement payment.

Flipkart deposits this TCS to the government and files GSTR-8 monthly. The credit appears in your GSTR-2B (Part II) on the 14th of the following month.

3. Understanding Flipkart Settlement Statement

Flipkart provides detailed settlement reports in the Seller Hub. Key items to reconcile:

• Order Revenue — this is your GST turnover (selling price × quantity)
• Flipkart Commission — deducted, GST at 18% charged by Flipkart — claim ITC
• Shipping Charges — deducted by Flipkart, GST at 18% — claim ITC
• TCS (1%) — deducted, claim back via GSTR-2B credit
• Returns / Cancellations — adjust in GSTR-1 as credit notes
• Net Settlement — amount actually deposited to your bank account

4. GST Returns Flipkart Sellers Must File

5. Claiming TCS Credit — Step by Step

1. Log in to GST portal after the 14th of the month
2. Download GSTR-2B → check Part II (Tax Collected at Source by e-commerce operator)
3. Verify the TCS amount matches your Flipkart settlement statement
4. In GSTR-3B → Table 8C — this TCS credit is auto-populated
5. TCS is credited to your Electronic Cash Ledger and offsets GST payable

6. ITC on Flipkart Fees and Charges

Flipkart charges 18% GST on its commission (referral fee), fixed fee, collection fee and shipping fee. You can claim Input Tax Credit (ITC) on all these charges, reducing your net GST liability. Ensure these invoices from Flipkart appear in your GSTR-2B before claiming.

7. Returns, Cancellations and Credit Notes

When a Flipkart order is returned or cancelled after you've raised an invoice:

• Issue a Credit Note for the returned order
• Report the credit note in GSTR-1 (Table 9B)
• Adjust the taxable value and tax in GSTR-3B accordingly
• Returns cannot be "ignored" — they must be properly accounted for in GST returns

8. ITR Filing for Flipkart Sellers

Flipkart seller income is taxable as business income:

• Use ITR-4 if opting for presumptive taxation (44AD) — turnover ≤ ₹2 crore
• Use ITR-3 if maintaining full books of accounts
• TCS deducted by Flipkart appears in Form 26AS — claim as advance tax/TDS credit in ITR
• Deductible expenses: Flipkart fees, packaging, warehousing, logistics, returns, advertising

9. Flipkart Seller Compliance Calendar