Guide · April 2026 · 8 min read
Amazon India Profit Calculator Guide:
GST, TCS & FBA Fees Demystified
You think you made ₹40,000 this month. Settlement day says ₹8,000. The gap is fees. This guide walks through a practical profit formula for amazon.in — every fee Amazon charges, how GST passthrough works, how tax withholdings work, and the common mistakes Indian sellers make. With a worked example.
TL;DR · The formula
Estimated profit = revenue excluding output GST − Amazon fees − GST TCS & income-tax TDS deducted − COGS − advertising and other business costs. Refunds and reimbursements are accounted for separately. TCS and TDS are claimable as tax credits.
Why Amazon India profit math is different
Most international Amazon profit tools treat GST as if it were a US sales tax (paid by the buyer, ignored by the seller) and TCS as if it didn't exist. Both assumptions break on amazon.in.
GST is a passthrough.When you list a product at ₹2,499, Amazon shows that GST-inclusive price to the customer. On settlement day, the GST portion (let's say ₹381 at 18%) goes to the government via your GSTR filing, and you receive the "principal" (₹2,118). Your real revenue is ₹2,118, not ₹2,499. Tools that calculate margin on the displayed price overstate your margin by 18%.
TCS and TDS are deducted from your payout. Amazon collects GST TCS (Section 52, CGST Act) and deducts income-tax TDS (Section 194-O) at the rates set by law for the period. Both reduce the money you receive, so they belong in your profit calculation — at the exact amounts on your settlement. Track them as their own lines, because you can claim them back: GST TCS on the GST portal, income-tax TDS through Form 26AS.
Replacement COGS hits you twice if you don't track it. On amazon.in, when a customer wants a replacement (defective unit, wrong colour), Amazon ships a new unit from your FBA inventory at no extra charge to the customer. The customer pays once; you pay COGS twice. International tools usually miss this because amazon.com handles replacements by refunding + re-ordering, which shows up as two separate transactions. On amazon.in it's invisible unless your tool specifically tracks replacement events.
Every fee Amazon India charges (April 2026 schedule)
1. Referral fee (% of selling price) — TIERED
Big change effective March 16, 2026: Amazon India cut referral fees to 0% on most products priced under ₹1,000 across 1,800+ categories — the biggest fee reduction in their history, covering 12.5+ crore products. Above ₹1,000, tiered rates apply by subcategory. Selected representative rates:
| Category | Under ₹1,000 | Above ₹1,000 | Notes |
|---|---|---|---|
| Books | 0-9% | 12.5% | 4 tiers · 0/2/9/12.5 |
| Mobile phones | 5% | 5% | Flat · NOT in zero program |
| Computers / Laptops | 6% | 6% | Flat · NOT in zero program |
| Cameras / TVs / Large Appliances | 5-6% | 5-6% | Flat · NOT in zero program |
| Health products | 8.5% | 8.5% | Flat · NOT in zero program |
| Software · Video Games | 7-11.5% | 7-11.5% | Flat · NOT in zero program |
| Automotive Parts | 11% | 11% | Flat · NOT in zero program |
| Electronics (headphones, speakers) | 0% | 18% | — |
| Home & Kitchen | 0% | 12.5% | Cookware/glassware |
| Personal care | 0% | 8% | — |
| Beauty (makeup) | 0% | 7% | Cap removed Mar 2026 |
| Toys | 0% | 11% | — |
| Grocery | 0% | 9% | 5% GST |
| Pet supplies | 0% | 11% | — |
| Apparel | 0% | 15-19% | Varies by subcat |
| Shoes | 0% | 8-15% | Sports highest |
| Watches | 0% | 15% | — |
| Furniture | 0% | 14.5%/10% | 14.5% ₹1k-15k · 10% >₹15k |
| Jewellery (fashion) | 0% | 13-22.5% | Fine: flat 2.5-10% |
| Default fallback | 0% | 12.5% | If uncategorised |
Source: Amazon Seller Central India fee schedule · Last verified May 2026. Subcategory variations exist — verify your exact rate via the Seller Central fee preview before pricing decisions.
2. FBA pick-pack + weight handling fee
If you use Fulfilment by Amazon (FBA), Amazon charges a per-unit pick-pack fee plus a weight-based handling fee. Pick-pack is ₹17 for standard items up to 1kg, then +₹5 per additional kg up to 5kg, then +₹2 per additional 5kg. Weight handling varies by delivery zone — Local (within district) is cheapest, Regional (within state cluster) is middle, National (cross-state) is highest (often 1.5-2× the Local rate). The combined estimates below assume the Regional zone, which is the median case for most amazon.in sellers.
| Weight bucket | Standard | Small | Oversize |
|---|---|---|---|
| ≤ 250 g | ₹49 | ₹38 | ₹89 |
| 251–500 g | ₹58 | ₹47 | ₹99 |
| 501–1 kg | ₹73 | ₹60 | ₹119 |
| 1–2 kg | ₹96 | ₹80 | ₹152 |
| 2–5 kg | ₹138 | ₹120 | ₹195 |
| 5–12 kg | ₹210 | ₹180 | ₹260 |
| 12–30 kg | ₹310 | ₹280 | ₹380 |
| > 30 kg | ₹420+ | ₹380+ | ₹520+ |
Source: Amazon India Seller Fees & Pricing · Last verified May 2026. FBA pick-pack + weight handling were not changed in the March 16, 2026 fee update — those rates apply to Easy Ship only. The combined estimates above are middle-of-range Regional zone numbers; verify your exact fees in the Amazon SC FBA Fee Calculator before pricing decisions.
3. Closing fee (FBA)
FBA closing fees by selling price: ₹25 (≤₹250), ₹24 (₹251-500), ₹28 (₹501-1,000), ₹50 (₹1,001-5,000), ₹60(>₹5,000). Note: Amazon's actual structure uses category groups (A/B/C/D/#/##) — books and media see lower rates (₹12-14), most general categories see the rates above, and a few premium categories at the top end can hit ₹80. Easy Ship and Self Ship use lower closing fees but apply weight-handling on top.
4. GST passthrough
Embedded in your selling price. Reverse-strip with the formula gst = price × rate ÷ (1 + rate). For ₹2,499 at 18% GST: ₹2,499 × 0.18 ÷ 1.18 = ₹381 GST, ₹2,118 principal. Common rates: 5% (apparel under ₹1,000, food), 12% (apparel above ₹1,000, fashion accessories, health), 18% (most goods), 28% (luxury / automotive parts), 0% (books).
5. GST TCS and income-tax TDS
Two separate deductions from your payout: GST TCS, reconciled on the GST portal, and income-tax TDS under Section 194-O, shown in Form 26AS. Include the exact amounts deducted in your profit as their own lines, and claim the credits back with your CA.
6. Storage fee (FBA only)
Charged monthly per cubic foot of FBA warehouse space your inventory occupies (~₹40-90 per cubic foot per month). For accurate per-order math, allocate proportionally by units sold that month — Seller Wolf does this automatically.
Worked example: a 5L pressure cooker
Let's calculate net profit on an illustrative 5L stainless-steel pressure cooker in the Home & Kitchen category, ~2.5 kg shipping weight, sold via FBA Standard. The product and numbers are an example, not a real listing.
| Line | Calculation | Amount |
|---|---|---|
| Selling price | listed price | +₹2,499 |
| Referral fee | 12.5% × 2,499 (above ₹1k) | −₹312 |
| FBA pick-pack + weight | Standard, 2-5 kg | −₹138 |
| Closing fee | ₹1k-5k bracket (FBA) | −₹50 |
| GST passthrough | 18% reverse-stripped | −₹381 |
| GST TCS + income-tax TDS | as deducted on your settlement (illustrative) | −₹13 |
| COGS | est. 35% of price | −₹875 |
| Storage allocation | ~₹15/unit/mo | −₹15 |
| Ad spend (allocated) | 12% ACoS estimate | −₹300 |
| Illustrative profit before income tax | computed | ₹415 |
| Net margin | on principal | 19.6% |
That ₹415 is illustrative profit before income tax. Margin on principal (revenue after stripping GST but before income tax) is ~19.6% — an illustrative result, not a category benchmark or expected outcome. Note how each fee compounds: the ₹2,499 list price drops to ₹2,118 principal, then to just under ₹500 after Amazon's six fee buckets, then to ₹415 after tax deductions, COGS, storage and ads. The March 16 2026 fee schedule cut the referral from 13% flat to 12.5% on items above ₹1,000 — a small ₹13 win for this ₹2,499 product. The much bigger win from the new schedule is for products priced under ₹1,000, which now pay 0% referral in most categories. A ₹500 home-kitchen item that previously paid ₹65 referral now pays ₹0.
Five common mistakes Indian sellers make
Calculating margin on the GST-inclusive price
Inflates your apparent margin by exactly the GST rate. A ₹500 product at 18% GST shows 32% gross margin on price but only 25% on principal. Always strip GST before the COGS comparison.
Losing track of TCS and TDS credits
TCS and TDS reduce your payout, so they belong in your profit, but they are also tax credits you can claim back. Lumping them into one fee line makes the credits easy to miss. Show them as their own lines and reconcile each with your CA.
Ignoring replacement-order COGS
When Amazon ships a replacement from your FBA inventory, the customer pays once but you bear COGS twice. Most international tools miss this because the amazon.com process is different. On amazon.in, multi-unit COGS attribution per replacement is critical for accurate margin tracking.
Using a US/EU fee table for amazon.in
Most US-built profit calculators ship with amazon.com fees, and EU-built ones default to EU rates. Either can undercount your real amazon.in costs by 10-20%. Always verify the fee schedule is sourced from sellercentral.amazon.in.
Forgetting storage cost on slow-movers
A SKU that sits 6 months in FBA can accumulate ₹250-400+ in storage fees per cubic foot, sometimes wiping out the profit on the first 2-3 sales. Track inventory age + storage allocation per SKU; remove or fire-sale anything past 180 days unsold.
FAQs about Amazon India profit calculation
Why is Amazon India profit math different from Amazon US or Europe?▾
Three big reasons. First, GST is a passthrough — sellers display GST-inclusive prices but don't keep the GST amount; it's collected and remitted to the government. The 'principal' (GST-excluded amount) is what hits your settlement. Second, Amazon deducts GST TCS and income-tax TDS from your payout; they reduce what you receive, and you can claim them back as tax credits. Third, replacement orders work differently in India: Amazon ships a new unit from your FBA inventory at no charge to the customer, and you bear the COGS — but the original sale's revenue is already in your books, so margin math gets weird if the tool treats the replacement as a separate sale.
What fees does Amazon India charge on every sale?▾
Six categories: (1) Referral fee — % of selling price, TIERED by price as of March 16, 2026: 0% on most products under ₹1,000 across 1,800+ categories, then 5-23% above ₹1,000 depending on subcategory. (2) FBA pick-pack + weight handling — combined fee ₹38-420+ per unit depending on weight bucket and size class (Standard/Small/Oversize). Pick & pack is ₹17 for standard items up to 1kg, then +₹5 per additional kg up to 5kg, then +₹2 per additional 5kg. Weight handling varies by zone (Local cheaper, Regional middle, National highest). (3) Closing fee (FBA) — ₹25 (≤₹250), ₹24 (₹251-500), ₹28 (₹501-1000), ₹50 (₹1k-5k), ₹60 (>₹5k) for most categories. Specific category groups (books/media) see ₹12-14, premium categories at the top end can hit ₹80. (4) GST passthrough — 5%, 12%, 18%, or 28% by category, embedded in your selling price. (5) Tax deductions — GST TCS and income-tax TDS, deducted from your payout at the rate set by law (claimable as tax credits). (6) Storage fee — monthly per cubic foot (₹45 non-peak, ₹170 peak Oct-Dec), only if you use FBA.
Why is the referral fee 0% on products under ₹1,000?▾
Effective March 16, 2026, Amazon India dropped referral fees to 0% on most products priced under ₹1,000 across 1,800+ categories. This was the biggest fee cut in Amazon India's history — Amazon stated it covers 12.5+ crore products. The intent: help small Indian sellers list low-ticket SKUs profitably and grow the marketplace. Categories affected include Home & Kitchen, Apparel, Beauty, Toys, Pet Supplies, Automotive, Office Products, Health, and many more. Above ₹1,000, the standard tiered rates kick in (5-23% by subcategory). Verify your specific subcategory rate at sellercentral.amazon.in.
How do I calculate net profit on a single Amazon India order?▾
Estimated profit = revenue excluding output GST − Amazon fees − GST TCS and income-tax TDS deducted − COGS − advertising and other business costs, with refunds and reimbursements accounted for separately. Use the exact amounts on your settlement. TCS and TDS can be claimed back as tax credits.
Should I include GST in my profit calculation?▾
No — GST is a pure passthrough, not a cost or revenue. The cleanest way to think about it: your 'real revenue' is the GST-excluded principal. Your real margin is calculated on principal, not on the displayed selling price. Most Indian sellers who confuse this think their margins are 18% higher than they actually are. The reverse formula is gst_amount = price × gst_rate / (1 + gst_rate).
Should GST TCS and income-tax TDS be in my profit calculation?▾
Yes — Amazon deducts them from your payout, so include the exact amounts deducted on each order. Track them as their own lines, because you can claim them back: GST TCS (Section 52, CGST Act) on the GST portal into your electronic cash ledger, and income-tax TDS (Section 194-O) through Form 26AS when you file your income-tax return. Rates are set by law for the transaction period; use the amounts on your settlement and confirm the treatment with your CA.
What's a 'good' net margin on Amazon India?▾
There is no universal good net margin. Results depend on your category, selling price, product costs, Amazon fees, returns and advertising spend. Use your own per-ASIN figures to understand margins and compare changes over time.
Do I need to recalculate profit when Amazon India changes fees?▾
Yes — and Amazon does change fees. The April 2024 fee schedule update raised FBA pick-pack by 8-15% in some weight buckets and added new rural-delivery surcharges. For long-term tracking, the full app reads the actual fees Amazon applied to each of your orders via the SP-API Finances endpoint — so you never have to manually update a fee table.
Ready to know your real profit?
Seller Wolf — available with a 30-day free trial — automates this for every order, every ASIN, every period of your business. Real fees from Amazon's Finances API, not estimates. India-grade GST/TCS tracking, FBA reimbursement recovery (MoneyBack), PPC suggestions, and more.