- Short answer
- No Shopify page we read in Sept. 2026 says it deducts §194-O TDS (now §393); its ToS say it isn't a marketplace and leave taxes on your sales to you.
- Law in force
- Since April 1, 2026: section 393(1), Table Sl. No. 8(v), Income-tax Act, 2025.
- Rate
- "0.1% of gross amount" since October 1, 2024, down from one per cent.
- Shopify's own pages
- No Shopify page we read on September 24, 2026 mentions section 194-O or TDS.
- Marketplace sales
- Amazon's Seller Central help names Amazon as the deductor for sellers on Amazon.in.
Who must deduct TDS under section 194-O?
Section 194-O of the Income-tax Act, 1961 is, since April 1, 2026, section 393(1), Table Sl. No. 8(v) of the Income-tax Act, 2025. That row covers a sale by an e-commerce participant (the seller) "facilitated by an e-commerce operator through its digital or electronic facility or platform", and names the deductor: "Any e-commerce operator".
The rate is "0.1% of gross amount", cut from one per cent by the Finance (No. 2) Act, 2024 with effect from October 1, 2024.
What Shopify's Terms say when guides call it an operator
A 2021 Razorpay explainer names "a digital or electronic platform like Shopify or Amazon" as an operator's platform, and section 194-O defined an operator as a person who "owns, operates or manages" a platform "for electronic commerce".
The deduction attaches to a sale "facilitated" through the operator's platform. Shopify's Terms of Service say "the Services are not a marketplace" and make you "the seller or merchant of record for all sales through the Services". On taxes, their section 5 reads:
You are solely responsible for determining, collecting, withholding, reporting, and remitting applicable taxes … that arise from or as a result of any sale on your Shopify Store
No Shopify page we read on September 24, 2026 — its Terms of Service, the India GST help page and an India billing help page — mentions section 194-O or TDS. Whether TDS applies to what you pay Shopify itself is a separate question.
GST asks the operator question under its own definition: see whether you are the e-commerce operator of your own store for TCS.
When does section 194-O TDS reach your sales?
When an e-commerce operator's platform facilitates them. The rule names that operator as the deductor, at "0.1% of gross amount"; Amazon's Seller Central help, for example, names Amazon as the deductor for sellers on Amazon.in. There is no deduction for an e-commerce participant that is an individual or a Hindu undivided family, whose gross amount of the sales or services or both during the tax year does not exceed ₹500000, and who has furnished a PAN or Aadhaar number to the e-commerce operator.
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