How Do You Withdraw Etsy Earnings to India in 2026?

1. Open an Etsy shop and pay the one-time set-up fee of $10 USD during onboarding, as Etsy requires for new shops in India.
2. Register for GST if you have not already, and add an active and regular GSTIN to your shop. Etsy may suspend shops without one.
3. Add your PAN, which must be the PAN inside your GSTIN, so Etsy deducts TDS at 0.1 percent instead of a higher rate.
4. In Shop Manager, go to Finances, then Payment settings, and select Enroll now to start Etsy Payments.
5. Choose Individual if the bank account is in your own name, or Business with Sole proprietorship if it is in a trade name.
6. Sign in to, or create, a Payoneer Payment Account and upload a government ID, a selfie and proof of address.
7. Link an Indian bank account in the same legal name to Payoneer, so the country and name match your Etsy details.
8. Add a valid credit or debit card to Etsy for fees, list items in the same currency as your Etsy payment account to avoid Etsy's 2.5 percent conversion fee, and wait for Monday deposits.

Etsy does not publish full fees for its withdrawal methods, so INR amounts are not calculated. The methods table above lists every fee it does publish.

Etsy charges a 6.5 percent transaction fee and a $0.20 listing fee, per the Etsy Fees and Payments Policy. For India, the Etsy Payments Policy sets a payment processing fee of 5 percent plus ₹25 per order. A 0.05 percent Regulatory Operating fee also applies. For example, a $100 sale costs about $11.75 plus ₹25 in Etsy fees.

Etsy withholds Indian taxes from every Indian seller. It collects 0.5 percent GST TCS and 0.1 percent TDS with a valid PAN or GSTIN, per Etsy India tax help. Etsy also requires an active GSTIN. Etsy asks for a W-8BEN only if its records identify you as a US seller.

• W-8BEN: Etsy says it issues Form 1099-K to sellers identified as US sellers, including those whose address is in the US or who receive payments in USD. To be removed from that filing, Etsy asks for a completed W-8BEN through Etsy Support, per its 1099-K help page. The IRS says foreign persons give Form W-8BEN when the payer asks. See W-8BEN for Indian freelancers.
• TDS: Etsy deducts TDS on all transactions at 0.1 percent when you provide a PAN or GSTIN, and may apply 5 percent if the PAN is missing or non-compliant, per Etsy India tax help. You can see the amounts in your Payment account and claim credit on the tax portal. The Income-tax Act, 2025 FAQs show TDS provisions moving to section 393 of the new Act. See TDS on marketplace payouts.
• GST TCS: Etsy collects and remits 0.5 percent Tax Collected at Source under GST on transactions through Etsy Payments, reported against your GSTIN, per Etsy India tax help. If your GSTIN is not active, the tax authority cannot assign the TCS to you, and Etsy says it will suspend the shop.
• GST on exports: Exports of goods are zero-rated supplies under IGST Act section 16. A registered seller can export without paying IGST by filing a Letter of Undertaking in Form GST RFD-11 under CGST Rule 96A. See LUT filing.
• GST on fees: Etsy lists its fees exclusive of VAT or similar taxes and says it may apply such taxes to seller fees depending on your business status and location, per the Etsy Fees and Payments Policy. Check your monthly Etsy statement for any tax line on fees.
• Income tax: Etsy income is taxed in India. The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026, and the presumptive schemes under old sections 44AD and 44ADA now sit in section 58. Those old sections applied up to tax year 2025-26. See 44AD vs 44ADA.

• FIRA: Etsy's help pages for India do not describe a FIRA or FIRC, since Etsy pays Payoneer and Payoneer pays your bank. Ask Payoneer and your bank for the inward remittance record. FIRA is a term used by banks and platforms and is not defined in the FEMA Export and Import Regulations, 2026. See FIRC vs FIRA vs e-BRC.
• Purpose code: Physical goods fall in RBI's export of goods group. The RBI purpose code list describes P0103 as "Advance receipts against export contracts (export of goods only)" and P0104 as "Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc." Ask your AD bank which code it applies. See purpose code for export of goods.
• EDF for goods: Under Regulation 3 of the FEMA Export and Import Regulations, 2026, a goods exporter declares the full export value in an EDF at the time of export, and the EDF is deemed part of the shipping bill at EDI ports. Ask your AD bank how it treats digital downloads. See EDF form for exports.
• Realisation: Export value must be realised within nine months, or twelve months if invoiced or settled in rupees, under Regulation 5 as amended on 22 September 2026. The 2026 regulations replaced the earlier Master Direction from 1 October 2026 per A.P. (DIR Series) Circular No. 20. For shipping bills up to ₹10 lakh, the regulations let the AD bank close the EDPMS entry on your declaration that payment was realised. See EDPMS closure.

• Payout on hold: New sellers' funds are generally eligible for deposit 14 days after a sale, and Etsy may hold a reserve percentage on a rolling basis, per Etsy deposit help. A negative balance or a missing card also stops deposits. Check Shop Manager for reserve or seller info banners, then fix the item it names.
• Name mismatch: Etsy says enrolment may take longer or fail if your legal name does not match the bank account name, per Etsy help for sellers in India. Enrol as an individual for an account in your own name. Use Business with Sole proprietorship for a trade name account.
• Country mismatch: The error "Looks like some details don't match" usually means the Payoneer account has a bank account from a different country, per Etsy Payoneer help. Choose India during Etsy Payments sign-up and link an Indian bank account to Payoneer.
• GSTIN inactive: Etsy checks GSTINs periodically and may suspend a shop whose GSTIN is not active and regular, per Etsy India tax help. Resolve the status with the GST authority, then update the GSTIN and matching PAN in your shop.
• Sent, not received: If Etsy shows the funds as sent to Payoneer but they have not reached you, Etsy directs Payoneer sellers to Payoneer's Support Center, per Etsy deposit help. Keep the Etsy deposit date and amount ready when you contact Payoneer.

Rules and rails are linked to official sources below with the dates they were checked. Platform figures come from each platform's own pages, checked on 30 Sept 2026 or later, and RBI authorisation was checked against RBI's published list. Rates are XE live mid-market rates, dated 4 Nov 2026. The method is on the methodology page.

1. Etsy Help: How to Accept Payments as a Seller in India, New shops in India can only sell internationally; one-time $10 USD set-up fee; GSTIN verification; must sign up for Payoneer; payment processing fee 5% + 25 INR; no domestic sales; Etsy deposits USD to Payoneer each Monday at 11:30am ET (9pm in India); Payoneer supports withdrawals in USD, EUR, GBP and INR for India; legal name must match bank account name; sole proprietorship for trade-name accounts. (checked 8 Oct 2026)
2. Etsy Payments Policy, Sellers resident in India are required to onboard to Etsy Payments by registering with Payoneer; funds deposited to Payoneer in USD; Payoneer withdrawal fees typically up to 3% of the transaction amount; Payoneer disbursements weekly on Mondays; standalone PayPal not available to new sellers where Etsy Payments is available; India fee 5% + 25 INR; 2.5% currency conversion fee; reserves, holds and deposit delays up to 180 days. Last updated 31 Jul 2026. Etsy is not responsible for funds after they are sent to the linked Payoneer Payment Account; processing fee assessed on gross order amount including delivery and tax. (checked 8 Oct 2026)
3. Etsy Fees and Payments Policy, Listing fee 0.20 USD; transaction fee 6.5% of display price plus delivery and gift wrapping; Offsite Ads fee 15% or 12%; Regulatory Operating fees by country; 2.5% currency conversion fee when listing in another currency; fees exclusive of VAT or similar taxes. Last updated 05 Oct 2026. (checked 8 Oct 2026)
4. Etsy Help: How Do I Use a Payoneer Account With Etsy Payments?, India listed among Payoneer countries; available funds sent to Payoneer each Monday; typically 2-5 business days to bank after withdrawal request; Etsy supports only USD deposits to Payoneer; Payoneer may set withdrawal minimums; 'Looks like some details don't match' error fix; enrolment steps via Shop Manager > Finances > Payment settings > Enroll now; ID, selfie and proof of address. (checked 8 Oct 2026)
5. Etsy Help: What Does Etsy Withhold and Remit to Indian Tax Authorities?, 0.5% TCS on transactions through Etsy Payments (Payoneer); TDS 0.1% with PAN or GSTIN, up to 5% where PAN non-compliant or not provided; active and regular GSTIN required, shop may be suspended; PAN must be contained in GSTIN; amounts shown in Payment account and on tax portal. (checked 8 Oct 2026)
6. Etsy Help: What is a Regulatory Operating Fee?, India 0.05%, charged on item price plus shipping cost and gift wrap. (checked 8 Oct 2026)
7. Etsy Help: What is Etsy Payments?, Buyer payment options under Etsy Payments include cards, Etsy gift cards, PayPal, Apple Pay and Google Pay; Payoneer sellers may be subject to Payoneer withdrawal minimums and fees. (checked 8 Oct 2026)
8. Etsy Help: Why Hasn't My Money Been Deposited Yet?, New sellers' funds generally eligible for deposit 14 days after a sale; Payoneer sellers receive deposits only on Mondays; contact Payoneer if funds were sent; reserves; negative balance; valid card required; confirm seller info. (checked 8 Oct 2026)
9. Etsy Help: What Do I Need to Know About My 1099-K Tax Form?, Sellers identified as US sellers (US address or receiving payments in USD) may be issued a 1099-K; to be removed, a completed W-8BEN is needed, requested via Etsy Support. (checked 8 Oct 2026)
10. IRS: About Form W-8 BEN, Give Form W-8 BEN to the withholding agent or payer if you are a foreign person, when requested. (checked 8 Oct 2026)
11. Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, Notification No. FEMA 23(R)/2026-RB (as amended up to 22 September 2026), Reg 2: 'Software' means any computer programme, database, drawing, design, audio/video signals, any information on any medium other than a physical medium. Reg 3(1): goods exporter furnishes EDF at the time of export; deemed submitted as part of shipping bill at EDI ports. EDPMS entry for shipping bill or invoice up to Rs 10 lakh may be closed on the exporter's declaration that payment has been realised. (checked 8 Oct 2026)
12. Foreign Exchange Management (Export and Import of Goods and Services) (Amendment) Regulations, 2026, Notification No. FEMA 23(R)/(1)/2026-RB (22 September 2026), Regulation 5(1): realisation period nine months; twelve months for INR invoicing or settlement. (checked 8 Oct 2026)
13. RBI A.P. (DIR Series) Circular No. 20, RBI/2025-26/194 (16 January 2026), Supersedes the Master Directions on export and import and the SOFTEX circulars from 1 October 2026. (checked 8 Oct 2026)
14. RBI A.P. (DIR Series) Circular No. 84 (2012), FETERS purpose codes for receipts, P0103 Advance receipts against export contracts (export of goods only); P0104 Receipts against export of goods not covered by the GR/PP/SOFTEX/EC copy of shipping bill etc. (checked 8 Oct 2026)
15. Integrated Goods and Services Tax Act, 2017, section 16: Zero rated supply, Section 16(1)(a): export of goods or services is a zero rated supply. (checked 8 Oct 2026)
16. Central Goods and Services Tax Rules, 2017, Rule 96A, Export without payment of integrated tax under a bond or Letter of Undertaking in FORM GST RFD-11. (checked 8 Oct 2026)
17. Income Tax Department: Objective and scope of the new Act (Income-tax Act, 2025) FAQs, FAQ 2: 1961 Act repealed on 01.04.2026. FAQ 19 example: TDS provisions (section 194C of old Act) correspond to section 393 of the new Act. FAQ 25: presumptive schemes under 44AD, 44ADA and 44AE consolidated into section 58. (checked 8 Oct 2026)