Find your true profit after GST, shipping, packaging, commission, TDS and bank transfer fees — all in one place.
Common questions about profit, fees and margins for Indian e-commerce sellers.
Net Profit = Revenue (excl. GST) − Product Cost − Shipping − Packaging − Commission − GST on Commission − TDS − Bank Fee. Margin % = (Net Profit ÷ Revenue excl. GST) × 100. Always extract GST from MRP first — your actual revenue is always lower than the selling price.
TDS under Section 194-O of the Income Tax Act is deducted by e-commerce platforms at 1% of the gross sale amount before remitting payment to you. You can claim this as a tax credit when filing your ITR. It is not an expense — it's a prepayment of your income tax liability.
GST is not charged on profit — it is collected on the selling price and remitted to the government. As a GST-registered seller, you collect GST embedded in the MRP, claim input tax credit on your purchases, and remit the difference. Your actual revenue is the MRP minus the GST collected.
A healthy net margin is typically 15–30% after all deductions. Below 10% is thin and risky, especially with returns and shipping fluctuations. Electronics and high-competition categories often see 5–12%, while niche or private-label products can achieve 30–50%.
Tradesala charges: 5% commission on revenue (excl. GST) + 18% GST on that commission + 1% TDS on gross MRP (Section 194-O) + 2% bank transfer fee on gross MRP. These are automatically factored into this calculator.
Work backwards: decide your target profit → add all costs (product + shipping + packaging) → add platform fees (commission + GST on commission + TDS + bank fee) → add GST on the final amount. This gives your minimum MRP to break even. Add your desired margin on top.