Accounting for a D2C or ecommerce business
Selling online breaks the assumption ordinary bookkeeping is built on, which is that a sale and the money arriving are the same event. Between the two sit marketplace commission, shipping, returns, cash on delivery, and tax collected at source by the platform. We reconcile what you sold against what actually landed in your bank, every month, and file on the numbers that survive that check.
Where this gets specific
The things a general accounting page will not tell you.
Marketplaces collect tax at source from you. Amazon, Flipkart and other operators deduct TCS on your sales and report it against your GSTIN. That amount is yours to claim, and it only reaches you if somebody claims it.
Your payout is never your sales figure. Commission, shipping, penalties and returns are all netted off before the money lands. Books built from bank credits alone understate your revenue and overstate your margin.
Returns need credit notes. A return that is not credited properly leaves you paying GST on a sale that came back. On a high-return category this is real money every month.
Stock in another state usually means GST there. If a fulfilment centre in another state holds your inventory, that generally creates a registration obligation in that state. Sellers find this out late.
Selling online removes the turnover threshold. Supplying through an ecommerce operator generally requires GST registration from the first sale, whatever your turnover.
Cash on delivery arrives late and in a lump. Matching a COD remittance back to the orders inside it is the slowest job in an ecommerce month, and the one most often skipped.
What we do about it
What we take over.
We reconcile every settlement. Marketplace and gateway payouts matched back to orders, so your revenue is your revenue and not your bank credits.
We claim your TCS. Matched against what the operator reported, so it reaches your cash ledger instead of sitting there.
Returns and credit notes, handled monthly. So you are not paying tax on goods that came back.
GST filed for every state you are registered in. Not just your home state.
The rest of it. Books, TDS, income tax, ROC where it applies, and notices. One fixed fee.
If your books are built from bank credits, your margin is wrong. Not slightly wrong.
Questions
What people in your position ask.
Do I need GST registration to sell on Amazon or Flipkart?
Generally yes, from the first sale. Selling through an ecommerce operator normally requires registration regardless of turnover, so the threshold that protects a small offline shop does not protect an online seller. Check your specific position before you list, because registering after you have started selling is harder than registering before.
What is TCS on marketplace sales and do I get it back?
Ecommerce operators collect a percentage of your net sales as tax at source and report it against your GSTIN. It is not a cost. It sits in your electronic cash ledger and reduces what you pay in cash on your next return, but only if someone matches it and claims it. Sellers who never look at it are effectively lending money to the government.
Do I need to register for GST in every state I store stock?
If your goods are held in a warehouse in another state, that generally creates a place of business there and a registration obligation with it. This is the single most common surprise for a brand that joins a national fulfilment programme. Tell us where your stock sits and we will tell you where you need to be registered.
Can you work with my Shopify and marketplace data?
Yes. Export it, or give us access, and we take it as it is. You do not migrate anything and you do not buy software.
By kind of business
Not quite you?
- SaaS and software
Export paperwork, the LUT, and revenue that is collected before it is earned.
- Agencies and studios
Contractor TDS, pass-through costs, and retainers billed ahead of the work.
- Consultants and professionals
Presumptive taxation, and the TDS your clients already deducted.
- Creators and influencers
Gifted products are income. Barter is taxable. Platform income is an export.