📌 Important: Meesho has two types of sellers — Suppliers (who list products on Meesho's catalogue) and Resellers (who share Meesho products on WhatsApp/social media). The GST rules are different for each category.
1. Meesho Suppliers vs Meesho Resellers — Tax Difference
| Type | Who They Are | GST Required? | TCS Applicable? |
|---|---|---|---|
| Meesho Supplier | Business listing products on Meesho catalogue | ✅ Mandatory | ✅ Yes — 1% TCS |
| Meesho Reseller | Individual sharing Meesho products to earn margin | ❌ Not required (income = margin) | ❌ No TCS |
2. Meesho Suppliers — GST Rules
If you are a Meesho Supplier (you upload products on Meesho's seller panel and dispatch orders), you are classified as an e-commerce seller. GST registration is mandatory under Section 24 of the CGST Act — no turnover threshold applies.
Meesho's Zero-Commission Model
Meesho is unique — it charges zero commission to suppliers (as of 2025). Meesho earns from logistics and advertisements. This means:
- No Meesho referral fee to pay (unlike Amazon and Flipkart)
- No ITC to claim on Meesho commission (since there isn't any)
- TCS is still deducted at 1% on net sales
- Shipping charges may be applicable depending on your arrangement
✅ Zero commission makes Meesho cost-effective for suppliers — but GST compliance and TCS rules are identical to Amazon and Flipkart.
3. TCS Deducted by Meesho
Meesho (Fashnear Technologies Pvt. Ltd.) files GSTR-8 monthly, depositing 1% TCS on all net taxable supplies made through its platform. This credit appears in your GSTR-2B.
| Sale Type | TCS Rate |
|---|---|
| Same-state supply (intra-state) | 0.5% CGST + 0.5% SGST = 1% |
| Different-state supply (inter-state) | 1% IGST |
4. Claiming TCS Credit from Meesho
- Download your GSTR-2B from GST portal after the 14th of each month
- Go to Part II — "Details of TCS" — look for Meesho's GSTIN (Fashnear Technologies)
- Verify the TCS amount against your Meesho settlement report
- While filing GSTR-3B, the TCS amount is auto-populated in Table 8C
- It gets credited to your Electronic Cash Ledger — offsets your net GST payable
5. Returns for Meesho Suppliers
Meesho has a very high return rate for fashion/clothing categories (up to 30–40%). Handling returns correctly in GST is important:
- For every returned order, issue a Credit Note
- Report credit notes in GSTR-1 (Table 9B — Credit/Debit Notes)
- The net sale value (sales minus returns) is your actual GST turnover
- Claim back the GST on returned goods in GSTR-3B
⚠️ Meesho's return policy allows buyers to return products with minimal scrutiny. Always reconcile your Meesho panel return data with your GST credit notes every month.
6. Meesho Resellers — Income Tax
If you are a Meesho Reseller (you share Meesho products via WhatsApp, Instagram etc. and earn a margin set by you), here's how your income is taxed:
- Meesho reseller income is taxed as income from business/profession in ITR
- GST registration is not required since you're not the actual seller — you're a marketing agent
- No TCS is deducted from your margin income
- File ITR-4 (presumptive) or ITR-3 declaring net margin as business income
- If total income (including other sources) is below basic exemption, no tax payable
💡 Meesho resellers who earn above ₹2.5 lakh/year must file ITR — even if no tax is payable. It's a statutory requirement and helps build a financial record.
7. GST Returns for Meesho Suppliers
| Return | Frequency | Due Date |
|---|---|---|
| GSTR-1 (Outward Supplies) | Monthly / Quarterly | 11th of next month |
| GSTR-3B (Summary + Tax Payment) | Monthly / Quarterly | 20th of next month |
| GSTR-9 (Annual Return) | Yearly | 31st December |
8. ITR Filing for Meesho Suppliers
- ITR-4 (Sugam) — for turnover ≤ ₹2 crore under presumptive scheme 44AD
- ITR-3 — if maintaining full accounts or turnover > ₹2 crore
- Meesho TCS appears in Form 26AS — claim as TDS credit in ITR
- Deductions: packaging, shipping (if borne by you), return costs, storage
9. Common Mistakes Meesho Sellers Make
- Not reporting returns in GST — high return rates on fashion categories can cause significant over-reporting if not corrected
- Skipping nil GSTR-3B — even months with zero orders require a nil return
- Misclassifying reseller income — some resellers don't disclose Meesho income in ITR at all
- Wrong product GST rates — clothing below ₹1,000 is taxed at 5%, above ₹1,000 at 12% — check correctly
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