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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.

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

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.

ActionWhere
Accept TCSTCS credit received (portal)
Use TCSOffset in GSTR-3B
Refund surplusRefund application (RFD-01)
Reconcile marketplace TCS statements with what shows in your portal every month — see the MTR reconciliation guide — so no credit is missed.

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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Frequently asked questions

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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