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What is Amazon settlement reconciliation?
Amazon settlement reconciliation is the process of matching each Amazon.in payout to the orders, refunds, fees and taxes it covers. Amazon pays sellers in settlement periods, net of referral fees, closing fees, shipping or FBA fees, refunds, reserves, TCS and TDS, so the amount in your bank is always lower than your gross sales. hisabkitab imports the settlement and tax reports from Amazon Seller Central and posts every item to your books with GST, so you know exactly what you earned.
Why is my Amazon settlement lower than my sales?
The difference between your Amazon sales and your settlement usually comes from:
Referral fees, charged as a percentage of the item price that varies by category
Closing fees, charged per item based on its price band
Weight handling fees for Easy Ship orders, or fulfilment and storage fees for FBA
Customer refunds, returns and A-to-z guarantee claims
A reserve Amazon may hold back against future refunds and claims
GST TCS at 0.5% of net taxable value and income tax TDS under Section 194-O at 0.1%
How to reconcile Amazon settlements in hisabkitab
Each settlement period takes a few steps:
Download the settlement report and the tax report from Amazon Seller Central.
Import both reports into hisabkitab.
Sales, refunds and fees are posted with the correct GST, ready for GSTR-1 and GSTR-3B.
Match each settlement to its orders and spot missing reimbursements or short payments.
Claim the TCS credit in your GST return and keep the TDS ready for your income tax return.
Amazon fees explained
Fee or deduction
What it is
How it shows in your books
Referral fee
A percentage of the selling price, set by product category
Selling expense, with GST input credit on Amazon’s invoice
Closing fee
A fixed fee per unit, based on the item’s price range
Selling expense, with GST input credit
Weight handling or FBA fees
Shipping, pick, pack and storage charges
Logistics expense, with GST input credit
Refunds
Money returned to customers for returns and cancellations
Sales return or credit note against the original sale
GST TCS and income tax TDS
0.5% TCS under Section 52 and 0.1% TDS under Section 194-O
TCS and TDS receivable, claimed in your returns
GST points for Amazon sellers
Amazon collects TCS under Section 52 of the CGST Act at 0.5% of the net taxable value of your supplies and reports it in GSTR-8. Accept these entries on the GST portal to get the credit in your electronic cash ledger. If you use Amazon fulfilment centres in other states, those locations generally need to be added to your GST registration in that state. hisabkitab lets you manage each GSTIN as a separate company, with consolidated reports across all of them.
Who uses Amazon reconciliation in hisabkitab?
FBA and Easy Ship sellers
Brands and resellers use hisabkitab to see the real cost of fulfilment, storage and returns for every product, not just the gross sales figure shown on the dashboard.
CAs handling e-commerce clients
Accountants use the imported data to prepare GST returns, match TCS with GSTR-8 and reconcile marketplace receivables for clients selling on several platforms.
FAQs
Why is my Amazon settlement lower than my sales?
Can I import Amazon reports directly into hisabkitab?
Does it handle refunds and returns?
Will my Amazon sales show up in my GST reports?
I also sell on Flipkart and Meesho. Can I manage them together?
Which plan is right for Amazon sellers?
How often does Amazon pay sellers in India?
How do I claim the TCS deducted by Amazon?
What is the TDS deducted by Amazon under Section 194-O?
Do FBA sellers need GST registration in other states?
