Amazon India crossed 20 lakh registered sellers on 8 September 2026 — its strongest year-on-year growth in seller numbers in three years.

That is 2,000,000 sellers. All of them legally required to register for GST from their first sale. All of them receiving monthly settlements that look nothing like their actual revenue. And the vast majority of them using accounting software that was never built for how Amazon selling actually works.

This guide is for the Amazon seller who has looked at their settlement report and wondered why ₹40,000 is missing. For the seller whose CA tells them every February that their books are a mess. For the FBA seller who didn't realise they need GST registration in Maharashtra, Karnataka, and Delhi — not just their home state.

We are Chartered Accountants who co-founded accounting software specifically for Indian marketplace sellers. This is not a generic comparison. Every problem in this guide is one we have seen firsthand in our CA practice.

Bottom line upfront: For most Amazon sellers in India in 2026, hisabkitab is the best accounting software — the only CA-built platform with Amazon MTR auto-import, settlement auto-split, TCS tracking, and GSTR-1 preparation from gross sales data. Starting at ₹2,999/year with a 7-day free trial.

Try hisabkitab free — no credit card: hisabkitab.co

Why Amazon Accounting is Different from Every Other Business

Ask any CA who works with Amazon sellers what the hardest part of their accounting is. They will not say "GST rates" or "TDS calculations." They will say: "The settlement report."

Here is why.

When you sell on Amazon, a customer pays ₹1,180 for your product (₹1,000 + 18% GST). Amazon collects the full ₹1,180. Before paying you, Amazon deducts:

• Referral fee (commission): ₹150 (15% of ₹1,000)

• GST on referral fee (18%): ₹27 — this is your ITC

• FBA/Easy Ship fee: ₹55

• TCS at 0.5%: ₹5 (on net taxable value)

• TDS under Section 194O (0.1%): ₹1

What reaches your bank: approximately ₹942

What most Amazon sellers record as revenue: ₹942 What your actual revenue is: ₹1,000 (ex-GST) What the GST you owe is: ₹180

Record the settlement as revenue and your books are wrong from Day 1. Your GSTR-1 will show ₹942 instead of ₹1,000. Amazon's GSTR-8 will show ₹1,000. The mismatch triggers a DRC-01C notice — automatically.

This is not a rare mistake. It is the default mistake every Amazon seller makes without the right accounting software.

The 5 Amazon-Specific Accounting Problems Every Seller Faces

Problem 1: The MTR (Monthly Tax Report) Is Impossible to Use Manually

Amazon provides a Monthly Tax Report with every order as a separate row — state of supply, tax rate, taxable value, GST collected, TCS deducted. A seller with 500 orders/month has a 500-row spreadsheet to process before filing GSTR-1 by the 11th.

Sorting by state (IGST vs CGST+SGST), separating returns, identifying B2B orders (Amazon Business), and mapping everything to the right GSTR-1 table — manually — takes 6–10 hours every month. One wrong filter = wrong GSTR-1 = mismatch with Amazon's GSTR-8 = notice.

Problem 2: TCS is Deducted but Never Claimed

Amazon deducts 0.5% TCS (reduced from 1% effective 10 July 2024, via CBIC Notification No. 15/2024-CT) on every sale. It deposits this to the government and reports it against your GSTIN in Form GSTR-8 by the 10th.

To claim it back you must log into the GST portal, go to TDS and TCS Credit Received, and click "Accept" every single month. Most sellers don't know this step exists.

On ₹10 lakh monthly GMV: ₹5,000 TCS per month = ₹60,000 per year sitting unclaimed.

Problem 3: FBA Multi-State GST Registration Trap

If you use Amazon FBA, your inventory may be stored in fulfilment centres across multiple states — even if you're based in one state. Goods stored in Amazon's Karnataka warehouse and sold to a buyer in Maharashtra is an inter-state supply — but it originates from Karnataka, not your home state.

Some tax professionals argue this creates a nexus requiring GST registration in each state where Amazon stores your goods. This is one of the most contested compliance questions for FBA sellers — and getting it wrong retroactively is expensive.

Problem 4: Returns and Credit Notes Are Not Tracked

Amazon's return rate varies from 5% (electronics) to 35% (fashion). Every return requires:

• A credit note issued by you

• Reported in GSTR-1 in the same period Amazon adjusted their GSTR-8

• Matching the return to the correct original order period

Most sellers either skip credit notes entirely or report them in the wrong period — both create GSTR-1 mismatches.

Problem 5: Amazon Commission ITC Is Being Lost

Amazon charges 18% GST on their referral fees and other charges. These invoices appear in your GSTR-2B. On ₹1 lakh monthly commission, that is ₹18,000 in claimable ITC every month — ₹2,16,000 per year.

Most sellers using generic accounting software never check this because the software doesn't flag it automatically.

Best Accounting Software for Amazon Sellers India 2026 — Compared

#1 hisabkitab — Best Overall for Amazon India Sellers

Best for: All Amazon sellers — FBM, FBA, Amazon Business, multi-category Price: ₹2,999/year (Starter) | ₹6,999/year (Pro) Free trial: 7 days, no credit card Built by: Chartered Accountants

hisabkitab is the only accounting software in India built by CAs specifically for marketplace sellers. Its e-commerce module was designed around the exact 5 problems above — not retrofitted from a generic accounting tool.

How hisabkitab solves every Amazon-specific problem:

MTR auto-import and GSTR-1 mapping: Upload your Amazon MTR — hisabkitab reads every row, identifies the state of supply, applies the correct tax head (IGST for inter-state, CGST+SGST for intra-state), separates B2B from B2C orders, identifies returns, and auto-populates every GSTR-1 table. What used to take 6–10 hours takes 20 minutes of review.

Settlement auto-split: Import your settlement report — hisabkitab automatically splits it into: gross sales, GST collected, referral fee, FBA fee, TCS, TDS, returns, advertising, and other deductions. Each component posts to the correct ledger account. Your revenue figure is always gross sales — not the settlement amount.

TCS tracking and auto-claim: hisabkitab tracks TCS deducted per month from your settlement report, matches it against what Amazon reported in GSTR-8 on the GST portal, sends a WhatsApp reminder before the GSTR-3B deadline, and pre-fills the TCS offset in your return. You never manually navigate the TCS acceptance screen again.

Commission ITC auto-identified: hisabkitab matches Amazon's commission invoices in your GSTR-2B automatically — flagging ₹18,000/month (on ₹1L commission) in ITC you can claim. This single feature pays for the software many times over.

Credit notes for returns auto-generated: Every return in your settlement report generates a credit note in hisabkitab — matched to the correct period (aligned to when Amazon adjusted their GSTR-8, not the original sale period).

Multi-state GST tracking: hisabkitab identifies the state of supply for every Amazon order and flags inter-state supplies separately — giving you and your CA the data needed to assess FBA multi-state registration requirements.

GSTR-3B auto-calculated: From the same data that prepared GSTR-1, hisabkitab calculates GSTR-3B — with ITC on commissions, TCS credit, and net payable in one view. No re-entry, no mismatch.

WhatsApp payment reminders for B2B buyers: For Amazon Business orders where corporate buyers take credit, hisabkitab sends automated WhatsApp payment reminders.

hisabkitab feature scorecard for Amazon sellers:

Who it is best for: New sellers starting out, growing sellers (₹1L–₹25L monthly GMV), FBM and FBA sellers, Amazon Business sellers, multi-category sellers.

Limitation: For sellers above ₹1 crore monthly GMV on 5+ platforms simultaneously, an enterprise-grade data aggregator like eVanik may be needed alongside hisabkitab for the reconciliation layer.

#2 Zoho Books — Best for Sellers Also Running a D2C Website

Price: ₹2,999/year Free trial: 14 days

Zoho Books is a polished cloud accounting platform with strong Shopify integration via Zoho Inventory. If you sell on Amazon and also have a Shopify/WooCommerce store that drives significant volume, Zoho Books handles the D2C side well.

For Amazon specifically:

• No native MTR import — settlement data must be entered manually or via third-party connector

• TCS reconciliation is manual

• GSTR-1 must be prepared manually from Amazon data

• Commission ITC not auto-flagged

Verdict: Good for D2C-first sellers who also list on Amazon. Not suitable as the primary tool for Amazon-heavy sellers — the manual work negates the software's cloud advantage.

#3 TallyPrime — Best for Sellers Whose CA Insists on Tally

Price: ₹18,000/year (Silver), ₹54,000/year (Gold)

TallyPrime is India's accounting institution — most CA firms know it well. If your CA manages your books in Tally and is not open to change, this is where you will be.

For Amazon specifically:

• No native Amazon MTR import — requires manual data entry or add-on tools

• No TCS tracking — must be done manually in the GST portal

• Desktop-first — no mobile app for on-the-go management

• 6x the price of hisabkitab at the Silver level for less e-commerce functionality

Verdict: Relevant only when your CA practice mandates Tally and managing the switch is not feasible. If you have a choice — hisabkitab at ₹2,999/year delivers significantly more Amazon-specific functionality at one-sixth the cost.

#4 Vyapar — Best for New Sellers with Low Volume

Price: ₹1,799/year Free trial: 15 days

Vyapar is India's most downloaded accounting app — simple, mobile-first, affordable.

For Amazon specifically:

• No settlement reconciliation

• No TCS tracking

• No GSTR-1 from MTR data

• Works for sellers with under 50 orders/month who primarily need basic GST invoicing

Verdict: Acceptable as a starting point for brand-new sellers with very low order volume. The moment you grow past ₹50,000 monthly GMV or 100+ orders/month, Vyapar's manual process creates compliance risk faster than it saves money.

#5 BUSY Accounting — Best for Sellers Also Running Offline Distribution

Price: ₹8,100/year (Basic)

BUSY is a strong inventory and accounting tool for businesses that combine offline wholesale or distribution with online marketplace selling.

For Amazon specifically:

• No Amazon MTR integration

• TCS manual

• Good inventory tracking if you manage your own warehouse

• Desktop-first

Verdict: Best when your Amazon business is secondary to an offline distribution business. Not the right primary tool for Amazon-first sellers.

Amazon Seller Types — Which Software Fits You

New FBM Seller (under ₹1L monthly GMV)

You are just starting. Orders are manageable. But GST compliance is not optional from Day 1.

Recommended: hisabkitab Starter (₹2,999/year)

Why: Building the right habits from the beginning (gross sales as revenue, TCS tracked monthly) costs nothing extra but saves you from expensive corrections later. Vyapar is cheaper but builds the wrong accounting habits.

Growing FBM Seller (₹1L–₹10L monthly GMV)

You have 200–500+ orders/month. MTR is now a real problem. TCS is accumulating monthly. GSTR-1 is taking 4–6 hours every month.

Recommended: hisabkitab (₹2,999–₹6,999/year)

Why: This is exactly the seller profile hisabkitab is built for. MTR auto-import alone saves 4–6 hours per month. TCS tracking ensures ₹5,000–₹50,000/month in credits are not lost.

FBA Seller (any GMV)

FBA adds multi-state complexity. Your goods are in Amazon's warehouses across India. Inter-state supply identification, multi-state IGST vs CGST+SGST classification, and FBA fee accounting are all non-trivial.

Recommended: hisabkitab + consultation with CA on FBA multi-state registration

Why: hisabkitab identifies state of supply for every order — giving you and your CA the data to assess whether multi-state registration is required. No other tool in this list does this automatically.

Amazon Business Seller (B2B orders)

Amazon Business orders require invoice-by-invoice reporting in GSTR-1 Table 4 (not the B2C summary). Buyers can claim ITC only if their GSTIN is correctly captured.

Recommended: hisabkitab

Why: hisabkitab auto-classifies Amazon Business orders (where buyer GSTIN is available) as B2B — reporting them in the correct GSTR-1 table. Generic tools treat all Amazon orders as B2C.

Multi-Category Seller (Electronics + Fashion + FMCG)

Different GST rates across categories (5%, 12%, 18%, 28%) require accurate per-product tax rate assignment. High return rates in fashion require automated credit note processing.

Recommended: hisabkitab

Why: HSN-code level GST rate assignment on every product, combined with automated credit note generation per return — makes multi-category selling manageable without a dedicated accountant.

What Good Amazon Accounting Software Must Do — Non-Negotiable Features

If you are evaluating any accounting software for your Amazon business, these 8 features are non-negotiable. Any tool missing even one of them will create compliance problems:

1. Record gross sales as revenue — not the settlement amount The most critical feature. Your settlement is never your revenue. Software that records what reaches your bank will always produce wrong GST numbers.

2. Amazon MTR auto-import Manual MTR processing at scale is not sustainable. At 500+ orders/month, errors are inevitable. The software must read the MTR file and map it to GSTR-1 automatically.

3. TCS tracking per month 0.5% TCS deducted by Amazon must be tracked, matched against GSTR-8, and applied in GSTR-3B. Any software that doesn't do this is costing you money every month.

4. Commission ITC identification Amazon's GST invoices for referral fees (18% GST) must be matched against GSTR-2B and flagged as claimable ITC. This is often the largest ITC source for active sellers.

5. Credit note generation for returns Returns must trigger credit notes — mapped to the period when Amazon adjusted their GSTR-8, not the original sale period.

6. B2B vs B2C classification Amazon Business orders (with buyer GSTIN) must go to GSTR-1 Table 4 as B2B. Regular consumer orders go to Table 7/Table 12. Wrong classification = buyer loses ITC = relationship problem.

7. TDS 194O tracking 0.1% TDS deducted by Amazon under Section 194O must be tracked as a receivable and claimed in your annual ITR.

8. Mobile access Amazon sellers manage their business on mobile. A desktop-only tool is not practical for sellers who are packing orders, managing inventory, and tracking shipments on their phone.

Amazon Seller Accounting — Monthly Compliance Timeline

Every Amazon seller must follow this exact sequence every month:

The Real Cost of Wrong Accounting Software

Many Amazon sellers choose based on price. Here is what the wrong choice actually costs:

TCS unclaimed (₹10L monthly GMV): ₹5,000/month × 12 = ₹60,000/year lost

Commission ITC unclaimed (₹1L/month commission): ₹18,000/month × 12 = ₹2,16,000/year lost

GST notice response cost (CA fees + time): Average ₹5,000–₹15,000 per notice response

GSTR-3B amendment + interest (₹50K underpayment, 3 months late): ₹50,000 × 18% ÷ 12 × 3 = ₹2,250 in interest alone

Total annual cost of wrong accounting software (conservative estimate): ₹2,78,250+

Cost of hisabkitab Starter: ₹2,999/year

The Bottom Line

Amazon India crossed 20 lakh sellers in September 2026. Every single one of them is legally required to be GST-compliant from their first sale. And the vast majority are using accounting software that records the wrong revenue figure, misses ₹60,000/year in TCS credits, and fails to flag ₹2+ lakh in claimable ITC.

The best accounting software for Amazon sellers in India in 2026 is the one that handles the 13-variable complexity of marketplace settlements automatically — not one that was built for a three-step business and adapted as an afterthought.

hisabkitab was built by CAs who have seen these problems firsthand in their practice. The e-commerce module was designed around the exact compliance failures Indian Amazon sellers face — and it solves every one of them for ₹2,999/year.

Start free for 7 days — no credit card: hisabkitab.co

Calculate your net GST payable after TCS and ITC: hisabkitab.co/gst-calculator-online