Meesho guide
Meesho TCS and TDS: what is deducted and how to get it back
Short answer
Meesho deducts two taxes from every delivered order: TCS of 0.5% under GST and TDS of 0.1% under section 194-O of the Income-tax Act, both on the revenue without GST. Neither is a loss. TCS is credited to your GST electronic cash ledger once you accept it on the GST portal, and TDS shows in Form 26AS for your income-tax return. Check both against your payment file each month.
The TCS and TDS rates on Meesho
| Tax | Rate | Law | Since |
|---|---|---|---|
| TCS under GST | 0.5% of the revenue without GST | Section 52, CGST Act; Notification 15/2024–Central Tax | 10 July 2024 (was 1%) |
| TDS on e-commerce | 0.1% of the revenue without GST | Section 194-O, Income-tax Act | 1 October 2024 (was 1%) |
OneClickOMS sellers’ recent Meesho payment files show exactly these rates. A few rows show 5% TDS, the higher rate that applies when a PAN is not available.
How they are worked out: an example
Revenue of ₹260.80 (sale amount ₹233 + shipping revenue ₹27.80) at 5% GST: the revenue without GST is ₹260.80 ÷ 1.05 = ₹248.38. TCS is 0.5% of that, ₹1.24, and TDS is 0.1%, ₹0.25. Both come off the settlement.
How to claim TCS back on the GST portal
Step 1: Meesho files GSTR-8
By the 10th of the next month, Meesho reports the TCS it collected against your GSTIN.
Step 2: Check the credit statement
On the GST portal, open your TCS and TDS credit statement and match each amount to your payment file.
Step 3: Accept it
Accepted TCS moves to your electronic cash ledger. Raise mismatches with Meesho before you file.
Step 4: Use it
Set it against the tax due in GSTR-3B, or claim a refund of the balance.
How to claim TDS back in your income-tax return
- The TDS Meesho deducts under section 194-O shows in your Form 26AS and AIS against your PAN.
- Match it to your payment files, and claim it as tax already paid when you file your income-tax return.
- Keep your PAN linked and correct on Meesho to avoid the higher rate.