How to setup and account for GST-TCS and TDS by Ecommerce Operators in Sales Invoices?


Can anyone recommend the best workflow to record Sales Invoices issued by e-commerce operators such as Amazon, Flipkart etc? And consequently accounting for the GST-TCS and TDS deducted by them before transferring payments to our bank account.

Please consider the following example:

Currently, I’m recording a Sales Invoice with a total of ₹336.00 (Row 1-4)
A Purchase Invoice is recorded for ₹106.58 (Row 8-11)
The payment receipt is recorded for ₹223.73 (Row 12)

How do I account for the TCS and TDS (Row 5-7)?
Is a Journal entry the best way to do it?

Or is there a better way? A journal entry for each transaction will be too slow and painful.

Any help is appreciated.

You can use Taxes and Charges section in Sales Invoice to record these. You may have to create separate Account for TCS etc.

If I add the amounts in Taxes & Charges, the invoice total will exceed the Order value.
I cannot even reduce the Taxable Amount, otherwise GST calculations will be impacted.

Also, TCS is not an additional tax item. Only a portion of GST already deducted before payment. Ideally, it should be added as credits to the current GST accounts.

You can create tax templates as per your accounting structure and achieve the below