GST on Meesho Sales: Output GST, TCS and Fee GST — What You Actually Pay

GST confuses Meesho sellers because it appears in three different places on the same order, and only one of them is money you keep paying. This guide separates the three so you know what each line in your payment sheet means.

1. Output GST on the product

The price the customer pays already includes GST at the rate for your product. You are the supplier, so that tax is yours to report and pay when you file your returns. To find how much of a price is tax, divide by (1 + rate): a ₹399 kurti at 5% has a taxable value of ₹380 and ₹19 of GST. The free GST calculator does this in "remove GST" mode.

Because the customer is usually in another state, marketplace sales are mostly inter-state supplies, which means IGST at the full rate rather than a CGST/SGST split. Returns matter here too: a returned order is reversed with a credit note, which reduces your output tax for the period.

2. TCS collected by Meesho

Under GST, e-commerce operators collect TCS (tax collected at source) on the net taxable value of what you sell through them and deposit it against your GSTIN. You will see it as a deduction in your settlement. The rate was reduced in 2024 and is now a fraction of a percent — check the current notification for the exact figure.

The important point: TCS is not a cost. It lands in your electronic cash ledger and is set off against the GST you owe when you file. If you ignore it you will overpay; claim it every month.

3. GST on Meesho's own charges

Meesho charges GST (generally 18%) on the services it bills you for, such as shipping. If you are registered, that GST is input tax credit: it reduces the output GST you pay. If you sell without registration under the small-seller exemption, it is simply part of your cost.

Putting it on one order

• Customer price ₹399 → taxable value ₹380, output GST ₹19 (yours to pay on filing)
• TCS deducted by Meesho on ₹380 at the current rate → credited to your cash ledger
• Shipping charge, say ₹70, plus 18% GST of ₹12.60 → the ₹12.60 is input credit if registered

Net effect for a registered seller: the GST you actually pay is output GST minus input credit minus TCS already deposited. For profit planning, the Meesho profit calculator lets you enter the GST you bear as a percentage of the selling price so the per-order number is realistic.

Staying compliant without a CA on speed dial

• Raise proper invoices. The free GST invoice generator splits CGST/SGST/IGST automatically and saves a PDF.
• Reconcile TCS monthly. Match the TCS in your payment sheet with what appears in your ledger before you file.
• Keep registers, not spreadsheets. GST management software imports your Meesho GST report and maintains sales, returns, ITC and payable in one place.

Conclusion

Output GST is the tax you pay, TCS is tax paid on your behalf that you must claim, and fee GST is credit you can use. Keep the three apart and GST stops eating into your Meesho margin. For the rest of the pricing maths, the Meesho calculator page lists every free tool.