---
title: How commission Is calculated – simple explanation
description: "## How commission is calculated -simple explanation **For example:** If you sell a smartwatch at ₹2,360/- Taxable value: ₹2,000/- Commission rate: 8% Commission: ₹2,000 × 8% = ₹160/- GST on Commission: ₹160 × 18% = ₹28.80/- Total Commission Deduction: ₹160…"
url: "https://cx.lxindia.com/docs/how-commission-is-calculated-simple-explanation/"
updated: "2026-09-15"
category: "Seller Commission & Fee Policy"
tags:
  - "Fee-Policy"
  - "Marketplace-Fees"
  - Seller Docs
  - "Seller-Commission"
  - "Seller-Policy"
---

# How commission Is calculated – simple explanation

## How commission is calculated -simple explanation

**For example:**

If you sell a smartwatch at ₹2,360/-

Taxable value: ₹2,000/-

Commission rate: 8%

Commission:

₹2,000 × 8% = ₹160/-

GST on Commission:

₹160 × 18% = ₹28.80/-

Total Commission Deduction:

₹160 + ₹28.80 = ₹188.80/-

TCS (example at 0.5%):

₹2,000 × 0.5% = ₹10/-

Total Deductions:

₹188.80 + ₹10 = ₹198.80/-

The remaining balance amount will be credited to the seller wallet as per the LX INDIA Settlement Policy.