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Flipkart Seller Compliance Guide for Indian Sellers – Complete 2026 Guide

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Financial Analyst

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Flipkart is one of India’s largest e-commerce marketplaces, offering huge opportunities for sellers. But to scale successfully, every seller must follow strict GST, TDS, accounting, product compliance, taxation, and marketplace-specific rules.

Non-compliance can lead to payment holds, penalties, listing removal, or account suspension.

This powerful guide by Saving Mantra covers everything a Flipkart seller needs in 2025 to remain 100% compliant and audit-ready.

1. Flipkart Seller Registration Requirements

Before selling, you must complete:

  • Proprietorship / Partnership / LLP / Pvt Ltd setup
  • PAN + Aadhaar
  • Bank account
  • GST Registration (mandatory for e-commerce sellers)
  • Pickup address approval
  • Product listing compliance

Best Structure for Scaling

  • LLP – low compliance + credibility
  • Private Limited Company – for long-term scaling, brand building, tax optimization

2. GST Compliance for Flipkart Sellers (Most Critical)

2.1 GST Registration – Mandatory

Selling on Flipkart requires GSTIN, even if turnover is below threshold.
E-commerce sellers do not get exemption.

2.2 Monthly GST Returns

Flipkart sellers must file:

  • GSTR-1 – outward supply
  • GSTR-3B – tax payment summary
  • GSTR-2B – ITC reconciliation

2.3 GST Categories to Reconcile

Flipkart provides several reports that must match GST returns:

  • Sales
  • Returns
  • Shipping fees
  • Commission fees
  • Refund claims
  • Penalties and adjustments

Incorrect reconciliation leads to GST mismatches, audits, and penalties.

3. TCS & TDS Rules for Flipkart Sellers

3.1 TCS under GST

Flipkart deducts TCS @ 1% on net taxable supplies.
This TCS appears in your GST portal and must be claimed during GSTR filing.

3.2 Section 194-O TDS (Income Tax)

Flipkart deducts TDS @ 1% on gross sales.
This amount reflects in Form 26AS, reducing your income tax burden.

4. Invoicing Requirements for Flipkart Sellers

Your invoice must include:

  • GSTIN
  • HSN code
  • Seller details
  • Customer details
  • Flipkart order ID
  • Tax breakup
  • Product details
  • Shipping details

E-invoicing

Mandatory if your turnover exceeds the government’s notified limit.

5. Accounting & Bookkeeping Requirements

Every Flipkart seller must maintain:

  • Sales register
  • Purchase register
  • Gross vs net settlement summary
  • Inventory register
  • Expense ledger
  • Commission & marketplace charges
  • Return & refund reports
  • Claim & reimbursement reports

Accurate accounting prevents losses and ensures smooth tax filing.

6. Product-Specific Compliance for Flipkart

Depending on your category, additional compliance may be required:

6.1 FSSAI License:

For food, supplements, beverages, consumables.

6.2 Trademark Registration:

Helps register your brand and prevent listing hijacking.

6.3 BIS / ISI Certification:

Mandatory for electronics, appliances, toys, and several regulated goods.

6.4 Legal Metrology (LMPC Certification):

Required for pre-packed goods with MRP.

Flipkart strictly monitors documentation. Missing certificates = product delisting.

7. Settlement, Returns & Flipkart Reconciliation

Flipkart adjusts multiple components:

  • Return orders
  • Refunds
  • Commission
  • Shipping fees
  • Packaging fees
  • Inventory losses
  • Damaged returns
  • Replacements
  • Penalties
  • Promotions & discounts

Why Reconciliation Is Important

  • Prevents financial losses
  • Ensures accurate GST filing
  • Detects unpaid reimbursements
  • Avoids tax mismatches

Most sellers lose money because they never reconcile settlement reports properly.

8. Income Tax for Flipkart Sellers

Your taxable business income is:

Sales – Purchase – Marketplace fees – Expenses – GST adjustments – Returns

Correct ITR Forms

  • Proprietorship – ITR-3 / ITR-4
  • Partnership/LLP – ITR-5
  • Company – ITR-6

Audit Requirement

Tax audit is required if:

  • Turnover exceeds ₹1 crore, OR
  • Digital receipts exceed 95% and turnover > ₹10 crore

9. Annual Compliance Checklist for Flipkart Sellers

For Proprietorship

  • GST returns
  • Income tax return
  • Books of accounts

For Partnership/LLP

  • LLP Agreement
  • Annual ROC filings
  • Income tax return
  • GST filing

For Private Limited Companies

  • Audit
  • Annual financial statements
  • MGT-7 / AOC-4
  • Income tax return
  • GST returns

10. Common Mistakes Flipkart Sellers Must Avoid

  • Not reconciling returns & commissions
  • Filing incorrect GST returns
  • Ignoring TDS/TCS credits
  • Missing invoices or HSN codes
  • Wrong tax classification
  • Delayed ROC and annual compliance
  • Selling regulated goods without proper licenses
  • Using personal bank accounts

These mistakes can cause huge losses and Flipkart account closures.

11. How Saving Mantra Helps Flipkart Sellers

We offer complete, automated, end-to-end Flipkart compliance support:

  • GST Registration & Monthly Filing
  • Sales, Returns & Settlement Reconciliation
  • TDS/TCS Credit Management
  • Accounting & Bookkeeping
  • Trademark, FSSAI, LMPC Registrations
  • Business setup (Proprietorship/LLP/Pvt. Ltd.)
  • Income Tax Return filing
  • ROC & Annual Company Compliance

Saving Mantra ensures 100% marketplace compliance + tax accuracy + financial clarity.

Disclaimer

This article is for educational and informational purposes only. Compliance requirements may differ based on business structure, product category, turnover, and government regulations. This content should not be considered legal or tax advice. For personalised compliance guidance, consult a qualified professional. Saving Mantra is not responsible for decisions made based on this article.

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