How to claim TCS credit and refund
The TCS marketplaces deduct is your money. Here's how to accept it, use it, and refund what's left over.
E-commerce operators collect Tax Collected at Source (TCS) on the net value of your sales and deposit it against your GSTIN. This is a credit you can use against output tax or, if it accumulates, refund.
Step 1 — Accept the TCS
The TCS appears in your GST portal (TCS credit received). You accept it so it reflects in your electronic cash ledger as available credit.
Step 2 — Offset against output tax
Use the accepted TCS to reduce the GST you pay when filing GSTR-3B. For many active sellers, this absorbs the balance each period.
Step 3 — Refund the surplus
If TCS keeps accumulating beyond your output liability (common for sellers with heavy input credit), you can claim a refund of the excess balance from the cash ledger via the refund application.
| Action | Where |
|---|---|
| Accept TCS | TCS credit received (portal) |
| Use TCS | Offset in GSTR-3B |
| Refund surplus | Refund application (RFD-01) |
Don't confuse it with 194-O TDS
GST TCS is separate from income-tax TDS under Section 194-O. One is claimed in GST returns, the other in your income-tax return.
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Can I get a refund of unused TCS?
Yes. If TCS accumulates beyond your output tax liability, you can claim a refund of the excess from your cash ledger.
Where do I accept TCS?
In the GST portal under TCS credit received, after which it reflects in your cash ledger for use or refund.
Is GST TCS the same as 194-O TDS?
No. GST TCS is claimed in GST returns; 194-O TDS is income tax claimed in your ITR.
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