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GST vs income tax for online sellers

Sellers juggle two separate taxes. Here's the clean distinction — and the free tools to handle each.

By the Launch My Office team · Updated 2026-06-22 · 5 min read

New sellers often blur GST and income tax together. They're completely separate systems with different bases, returns and authorities. Getting the distinction clear makes compliance far less stressful.

GST — a tax on supply

GST is charged on the sale of goods and services. You collect it from customers and pass it to the government, claiming input credit on your purchases. It's filed via GSTR-1 and GSTR-3B. Estimate prices and tax with the Reverse GST Calculator and HSN Code Finder.

Income tax — a tax on profit

Income tax is charged on your business profit (revenue minus expenses), not your turnover. It's paid via advance tax and your annual return. Estimate it with the Income Tax Calculator.

FeatureGSTIncome tax
Tax onSupply (sales)Profit
Collected fromCustomersYou (on your income)
ReturnsGSTR-1, GSTR-3BITR + advance tax
CreditInput tax creditTDS/TCS credit
Your GST turnover is not your taxable income. GST is on what you sell; income tax is on what you earn after costs.

How they interact

Marketplace TCS and 194-O TDS touch both systems — one credited to your GSTIN, one to your PAN. Reconcile both against your settlement reports.

Tools for each

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Frequently asked questions

Is GST the same as income tax?

No. GST is a tax on sales that you collect and remit; income tax is on your business profit. They have separate returns and authorities.

Do I pay income tax on my GST turnover?

No. Income tax applies to your profit (revenue minus expenses), not your gross GST turnover.

Which tools help with each?

Use the HSN Finder and Reverse GST Calculator for GST, and the Income Tax Calculator for income tax — all free.

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