1. Company’s position
1.1The Company provides a taxable service (marketing, promotion and customer-acquisition) to Partner Stores and retailers, in exchange for commission. This is a supply of services under the Central GST Act, 2017, the State GST Act of Kerala and the Integrated GST Act, 2017, taxable at the rate in force (currently 18%) under the applicable service accounting code (SAC) that our CA confirms.
1.2GST on commission is charged to the store in addition to the commission, shown separately on a tax invoice (CGST + SGST for stores in the same State; IGST for stores in other States).
1.3The Company becomes liable to register for GST once its aggregate turnover exceeds the threshold in force for services, or earlier where the law requires (for example certain inter-State supplies or e-commerce activity). Until registered, the Company will not charge GST on invoices. After registering, it will.
2. Stores
- The store is responsible for GST on its own sales, including goods that are exempt or nil-rated. A customer’s buying exempt goods does not change the GST on our commission.
- A registered store may claim input tax credit on our invoice, subject to the law. It must give its correct GSTIN. We issue invoices in the name and GSTIN given.
- If the store is unregistered, we cannot issue a GST invoice with its GSTIN; we still charge GST on our commission where we are registered.
- Credit notes: if a purchase is returned or an invoice corrected, we issue a credit note or amended invoice as the law allows.
- Where the law requires a store to deduct TDS on our commission, the store must deposit it and give us the certificate.
3. Shoppers
- Cashback is a reward or discount linked to a purchase and is not a separate sale by us to the shopper. We do not charge GST to shoppers.
- Shoppers should keep the store’s GST bill for the purchase. Cashback does not change the GST the store charged on the bill.
- We may deduct tax at source and collect PAN where the law requires (Part 7, clause 6).
4. Company’s duties
The Company will: issue tax invoices with required details; file GST returns and pay tax on time; keep books for the period the law requires; and respond to notices. Referral bonuses and cashback paid to individuals are treated by the Company as per its CA’s advice on deduction, reporting and input-credit.
5. Records
Invoices, ledgers, bills, bank records and Platform logs are kept for at least 8 years (or longer if a notice or case is pending).