Large mismatch between AIS Business Receipts and GST Turnover (Amazon/Flipkart Seller) – Need help - Income Tax

I am an Amazon and Flipkart seller (Regular GST registration).

I am filing my Income Tax Return for FY 2025–26, but I found a major mismatch:

* Business Receipts (TIS/AIS): ₹56,26,248
* GST Turnover (TIS/AIS): ₹33,88,927
* Difference: ₹22,37,321

While checking my GST records, I noticed that June, July and August 2025 appear to have NIL/₹0 outward taxable supplies in both GSTR-1 and GSTR-3B, even though I had actual sales during those months.

From my marketplace reports:

* Amazon + Flipkart sales during June–August were approximately ₹13 lakh.

Even after considering these three months, there is still around ₹9 lakh of unexplained difference between Business Receipts and GST Turnover.

To address the query posted by Sana Khan regarding the major discrepancy between AIS/TIS Business Receipts (₹56,26,248) and GST Turnover (₹33,88,927):

1. Root Cause Analysis of the Discrepancy (₹22,37,321)

June–August 2025 Missing GST Turnover (~₹13,00,000):
- Reporting NIL/₹0 sales in GSTR-1 and GSTR-3B for June, July, and August 2025 while actual marketplace sales were occurring creates a direct GST short-reporting issue.
- Because Amazon/Flipkart report these sales monthly via GSTR-8 (GST TCS u/s 52) and Section 194-O TDS (Income Tax), the Income Tax Department automatically fetches these figures into your AIS/TIS.
Remaining Difference (~₹9,37,321) – Gross Value vs. Net Value:
- AIS Reporting (Section 194-O TDS): E-commerce operators report the Gross Sale Consideration (including customer payments, GST, delivery charges, and before deducting marketplace commission, shipping fees, or returns).
- GSTR-3B / GST Turnover: Reflects Net Taxable Supplies (Gross Sales minus Sales Returns / Cancellations and excluding tax amounts).

2. Remedial Action Plan

Step A: Reconcile Marketplace Reports with AIS and GST

Download the annual Tax Settlement Reports / Merchant Tax Reports from Amazon Seller Central and Flipkart Seller Hub for FY 2025–26.
Prepare a 3-way reconciliation statement:
- Gross Sales Value (as reported under Section 194-O TDS in AIS).
- Sales Returns / Cancellations during the financial year.
- Net Sales Turnover (actual taxable turnover).

Step B: Fix the GST Reporting Errors (June–August 2025)

Since GSTR-1/3B for FY 2025–26 can no longer be directly amended for past months without tax implications:
- Rectify the under-reported turnover by adding the omitted turnover (~₹13 Lakhs) in the upcoming GSTR-1 & GSTR-3B filings, or reflect it in the GST Annual Return (GSTR-9) for FY 2025–26.
- Pay the applicable output GST along with interest under Section 50 of the CGST Act for late tax payment.

Step C: ITR Filing Strategy

Disclose Actual Gross Turnover in ITR: Report your true gross revenue from books of accounts (inclusive of marketplace charges and adjustments).
Submit AIS Feedback: Log in to the Income Tax e-Filing Portal > AIS > Business Receipts / Section 194-O TDS.
- Select the relevant entries and mark feedback as "Information is partially correct" or "Information relates to gross sales before returns/commission".
Maintain Reconciliation Documentation: Keep the reconciliation sheet, marketplace sales summaries, and GSTR-8 / TCS credits ready to respond to any automated e-Verification notice from the Income Tax Department.

The mismatch arises from omitted GST sales in June–August (~₹13L) and the AIS reporting gross order values before sales returns/commissions u/s 194-O (~₹9.37L). Fix the omitted turnover in GST returns with interest, file feedback on the AIS portal explaining gross vs. net turnover, and report true revenue in your ITR.

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Large mismatch between AIS Business Receipts and GST Turnover (Amazon/Flipkart Seller) – Need help

Sana Khan

Aashok Kumar Sharma

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