Starting April 3, 2023, to comply with local laws, Etsy will implement tax deduction at source (TDS) for sales of sellers in India in accordance with the Income Taxes Act. The TDS will go towards the tax bills you owe to the Indian Tax Authority (ITA). We’ll remit these amounts to the ITA at the end of each month and will issue certificates detailing the amount of TDS each quarter.
If you’ve already added a GSTIN or PAN to your Etsy account, there’s nothing you need to do. In fact, your TDS will be up to 4% lower because you already have your taxpayer information on file.
Beginning April 1, 2023, Etsy will start applying TDS at 1% on all your sales including Paypal and other methods.
To learn more, you can head to Etsy’s Help Center and read this article: help.etsy.com/hc/articles/11817502933783