Meesho TCS and TDS: what is cut and how to get it back

Meesho cuts 0.5% TCS and 0.1% TDS from each payment. Neither is a fee. Both are your own tax, paid early in your name. You get TCS back through GST, and TDS through your income tax return.

Checked on 14 October 2026Hindi mein padhein (Hinglish)

TCS and TDS on a ₹1,050 sale (5% GST)

Example numbers. ₹1,050 ÷ 1.05 = ₹1,000, the sale without GST.

TCS (tax collected at source) is a GST rule: the marketplace keeps back a small part of each sale and pays it to the government in your name. TDS (tax deducted at source) is the same idea under income tax. So the money is not lost. You claim it as credit.

The numbers on this page come from one clothing store's payment files (5% GST) that we checked, May to October 2026.

How much is cut

  • TCS is 0.5%. It used to be 1%, and the government cut it to 0.5%. Every order with TCS in our files showed 0.5%, to the rupee.
  • TDS is 0.1%. It used to be 1%. From 1 April 2026 the rule sits in the new Income-tax Act, 2025, still at 0.1%. The TDS Rate % column in the files said 0.1.
  • Both are worked out on what the customer paid, minus the GST. That includes the shipping the customer paid. For a 5% product it is the sale ÷ 1.05; for an 18% product, ÷ 1.18.

Worked example

One month of TCS and TDS: two separate credits

TCS: 0.5% of ₹1,00,000Claim it through GST₹500
TDS: 0.1% of ₹1,00,000Counts against your income tax₹100

Example numbers: a month with ₹1,00,000 of sales without GST. To see your own month, add up the TCS and TDS columns in your payment file. Returns that month mean a little less TCS.

When nothing is cut: a return before you were paid has no TCS or TDS, and an RTO comes to ₹0. A return after you were paid gives the TCS and TDS back while it takes the sale back.

Is TDS cut for a small seller?

Not always. The Income Tax Department's TDS questions and answers for 2026-27 say no TDS is needed when the seller is a resident individual or HUF (a Hindu undivided family) and their sales through the marketplace in the year are ₹5 lakh or less. A firm or company has no such limit. A tax site adds that you must have given the marketplace your PAN or Aadhaar.

₹5 lakh a year is about ₹42,000 of sales a month, so most sellers who ship every day are over it. If TDS was cut and you think it should not have been, ask your CA. It is still tax paid in your name.

How to get TCS back (GST)

  1. The marketplace pays the TCS to the government and files a monthly TCS return, GSTR-8, by the 10th of the next month.
  2. On the GST portal, open the TDS/TCS Credit Received statement. The TCS shows there.
  3. Accept it and file the statement. Only then does it reach your GST cash balance on the portal.
  4. Use that balance to pay your GST. If it keeps growing, ask your CA about a refund.

Your CA usually does this. Ask them each month: did you accept last month's TCS?

How TDS is credited (income tax)

TDS is advance income tax against your PAN. It should show in your tax statements on the income tax website (Form 26AS and AIS; your CA will know them). Check them before you file your return. In the return, TDS counts against the tax you owe, and any extra is refunded.

Selling without GST registration

Without a GSTIN you can sell in your own State with an enrolment ID, and then the marketplace does not cut TCS. TDS is income tax and has its own rules, above. More: sell on Meesho without GST.

Questions sellers ask

What is TCS in a Meesho payment?

GST collected at source: 0.5% of your sale without GST, kept back by the marketplace and paid to the government in your name. You claim it on the GST portal.

Why is TCS 0.5% and not 1%?

The government cut the rate from 1% to 0.5%. The payment file's TCS header still says 1%, but every order we checked was 0.5%.

Is TCS refundable?

It is not a fee. Once you accept and file it in the TDS/TCS Credit Received statement, it becomes GST cash balance you can pay GST with. For a leftover balance, ask your CA about a refund.

Why doesn't my TCS on the GST portal match my sales?

The TCS should follow the GST report, which counts orders by shipping month, and returns and RTO often come off in a later month. Your payment file goes by payment date. More in the GST report guide.

What is the TDS rate on Meesho sales in 2026-27?

0.1%. From 1 April 2026 the rule is in the Income-tax Act, 2025, at the same rate. A resident individual or HUF with marketplace sales of ₹5 lakh or less in the year has no TDS cut.

How do I claim the TDS cut by Meesho?

Check Form 26AS and AIS before you file your income tax return. In the return it counts against the tax you owe, and any extra is refunded. Ask your CA if the amounts don't match.

Next step

OrderLens reads your payment files and shows what was paid, what is still to come, and your real profit after returns, with TCS and TDS shown separately. It's free for now.

See your TCS and TDS in OrderLens

Sources

  1. A real Meesho seller's payment files and GST reports, May to October 2026 (checked by OrderLens; totals only)
  2. GST portal FAQ: GSTR-8, the marketplace's TCS return · GST portal
  3. GST portal guide: TDS/TCS Credit Received · GST portal
  4. Income Tax Department: FAQs on TDS, rates for tax year 2026-27 (e-commerce 0.1%; ₹5 lakh rule) · Income Tax Department
  5. Income Tax Department: Income-tax Act, 2025 in force from 1 April 2026 · CBDT, Ministry of Finance
  6. Tax site: TDS on e-commerce under the new Act, PAN or Aadhaar needed for the ₹5 lakh rule (July 2026) · TDSMan
  7. GST law, section 52: TCS by marketplaces · CBIC
  8. Government notice: TCS cut to 0.5% (July 2024) · CBIC, Ministry of Finance
  9. Union Budget: TDS on marketplace sales cut to 0.1% (July 2024) · Ministry of Finance
  10. Government notice: no TCS from sellers with an enrolment ID · CBIC, Ministry of Finance