Meesho TCS & TDS Deduction — How Much Is Cut and How to Claim It Back

Meesho deducts two taxes on every sale: 0.5% GST TCS (under Section 52) and 0.1% income-tax TDS (under Section 194-O). Both are not a cost — they are advance taxes paid in your name. You can claim 100% of them back: GST TCS as a credit in your electronic cash ledger, and income-tax TDS against your annual tax liability when you file your ITR.

Most Meesho sellers never claim this money because they don't know it's sitting in their GST ledger and Form 26AS. On ₹10 lakh of annual sales, that's roughly ₹5,000 in TCS + ₹1,000 in TDS = ₹6,000+ you can recover every year.

Key Takeaways

GST TCS: 0.5% of your net taxable sales, collected by Meesho under Section 52. Claimable in your electronic cash ledger.
Income-tax TDS: 0.1% of gross sales, deducted by Meesho under Section 194-O. Claimable in your ITR via Form 26AS / AIS.
Both appear in your Meesho payment/settlement statement — reconcile them line by line.
You need GST registration to sell taxable goods on Meesho and to claim TCS.
Unclaimed TCS/TDS is real money lost — most sellers leave ₹6,000+ a year unclaimed.

What Is TCS on Meesho Sales?

TCS (Tax Collected at Source) is a GST mechanism under Section 52 of the CGST Act. Every e-commerce operator — Meesho, Flipkart, Amazon — must collect a small percentage of the seller's net taxable sales and deposit it with the government against the seller's GSTIN.

Rate: 0.5% of net taxable value (0.25% CGST + 0.25% SGST, or 0.5% IGST for inter-state).
On what: Net sales = total taxable sales − returns/cancellations for the month.
Who deposits it: Meesho, in monthly form GSTR-8.
Where it lands: Your GST electronic cash ledger, ready to offset future GST liability.

So TCS is not a fee — it's your own tax, parked with the government, that you pull back into your ledger.

What Is TDS on Meesho Sales (Section 194-O)?

TDS (Tax Deducted at Source) here is an income-tax deduction under Section 194-O, separate from GST. Meesho deducts it on the gross value of your sales and deposits it against your PAN.

Rate: 0.1% of gross sales (reduced from 1% with effect from 1 October 2024).
On what: Gross amount of sales of goods/services through the platform.
Where it shows: Your Form 26AS and AIS on the income-tax portal.
How to claim: It's adjusted against your total tax liability when you file your ITR — any excess is refunded.

Meesho TCS vs TDS — Quick Comparison

Aspect	GST TCS	Income-tax TDS
Law	Section 52, CGST Act	Section 194-O, Income Tax Act
Rate	0.5% of net taxable sales	0.1% of gross sales
Deducted against	Your GSTIN	Your PAN
Filed by Meesho in	GSTR-8 (monthly)	TDS return → Form 26AS
You claim it in	Electronic cash ledger (GST)	ITR (income tax)
Refundable?	Offsets GST payable	Yes, if excess

How to See Your TCS & TDS on Meesho

Both deductions are itemised in your Meesho settlement data:

Open Meesho Supplier Panel → Payments → Payment/Settlement statement.
Download the settlement file for the period.
Look for the TCS and TDS columns against each settled order.
Sum them per month — this is what you'll cross-check against GSTR-8 (TCS) and Form 26AS (TDS).

Manually totalling these across thousands of orders is where mistakes happen. A reconciliation tool like TrackEcom auto-extracts TCS/TDS per order so your claimed amount matches Meesho's deduction to the rupee. See our full Meesho payment reconciliation guide for the step-by-step process.

How to Claim Your Meesho TCS Back (GST)

Meesho files GSTR-8 each month, declaring the TCS collected against your GSTIN.
This auto-populates in your "TCS and TDS credit received" tab on the GST portal.
Accept the entries there — the credit moves into your electronic cash ledger.
Use that balance to pay your monthly/quarterly GST liability in GSTR-3B — or claim a refund if it keeps accumulating.

How to Claim Your Meesho TDS Back (Income Tax)

Check that the TDS appears in your Form 26AS / AIS after each quarter.
While filing your ITR, the TDS is credited against your total tax payable.
If your tax due is lower than the TDS deducted, the difference is refunded to your bank account.

Common Mistakes Meesho Sellers Make

Not accepting TCS credit on the GST portal — the money just sits there unused.
Treating TCS/TDS as a loss in their P&L instead of a recoverable asset.
Mismatch between Meesho's deduction and GSTR-8 going unnoticed — see our payout mismatch guide.
Filing ITR without checking Form 26AS, leaving the TDS refund on the table.

Frequently Asked Questions

How much TCS does Meesho deduct?

Meesho deducts 0.5% GST TCS on your net taxable sales under Section 52 of the CGST Act. On ₹1,00,000 of net sales, that's about ₹500, fully claimable in your GST electronic cash ledger.

How much TDS does Meesho deduct?

Meesho deducts 0.1% income-tax TDS on gross sales under Section 194-O (reduced from 1% effective 1 October 2024). It's claimable against your income-tax liability when you file your ITR.

Can I get my Meesho TCS and TDS refunded?

Yes. GST TCS goes into your electronic cash ledger and offsets your GST payable (refundable if it accumulates). Income-tax TDS is adjusted in your ITR, and any excess over your tax liability is refunded.

Where do I see TCS and TDS on Meesho?

In your Meesho Supplier Panel under Payments → Settlement statement. Each settled order shows its TCS and TDS columns. Cross-check the monthly totals against GSTR-8 (for TCS) and Form 26AS (for TDS).

Do I need GST registration to sell on Meesho?

To sell taxable goods and to claim TCS credit, yes — a valid GSTIN is required. Meesho does allow some non-GST sellers for specific exempt categories, but without GST you cannot reclaim TCS.

Tax rates and rules change — TCS is 0.5% and Section 194-O TDS is 0.1% as of 2026. Always confirm current rates with the GST/Income-Tax portal or your CA before filing.