Aiva – Customer Terms & Conditions

Last updated: July 2025 ·

1. Aiva’s GST Status as an E-Commerce Operator (ECO)

Aiva Private Limited is registered under the Goods and Services Tax (GST) regime in India as an E-Commerce Operator (ECO), as defined under Section 52 of the Central Goods and Services Tax Act, 2017 (“CGST Act”).

As an ECO, Aiva is required by law to:

  • Deduct Tax Collected at Source (TCS) from sellers (store partners) on taxable supplies made through the Aiva platform
  • Deposit the TCS with the appropriate government authorities
  • File monthly returns under GSTR-8, which discloses the seller-wise taxable turnover and TCS collected
  • Report seller GSTINs and related order data to the GSTN (Goods and Services Tax Network)

These obligations apply to all e-commerce platforms in India, and are not optional. Aiva has no discretion to waive TCS deduction if your sales meet the legal conditions defined below.

2. Understanding TCS (Tax Collected at Source)

Tax Collected at Source (TCS) under GST refers to a tax that e-commerce operators must deduct on behalf of sellers when:

  • A taxable sale is made through the platform
  • The seller is a GST-registered person
  • The sale involves taxable goods or services under GST

This TCS is:

  • Not a fee or charge by Aiva
  • Paid to the government directly under Aiva’s GSTIN
  • Reflected as a credit in the seller’s GST portal (can be claimed while filing GSTR-3B)

The applicable rate is:

  • 1% of net taxable value of the order

    • 0.5% CGST + 0.5% SGST (for intra-state supply), or
    • 1% IGST (for inter-state supply)

“Net taxable value” = order value excluding GST charged on invoice

3. When TCS Will Be Deducted by Aiva

TCS will be deducted only when the following conditions are met:

  • The store partner has provided a valid GSTIN
  • The order has been successfully delivered and marked so on the platform
  • The products involved are taxable supplies under GST

TCS will be:

  • Calculated automatically
  • Reflected in your Ledger under “TCS Deducted”
  • Reported under your GSTIN in Aiva’s monthly GSTR-8 filing
  • Made visible in your GST portal as “TCS Credit Available” for claiming

If the store is not registered under GST or has declared itself exempt, TCS deduction will not apply — but invoicing and credit claims will also not be supported.

4. Invoice Generation And Format

Aiva supports two invoice pathways based on the store partner’s tax registration status.

A. If the Partner has a Valid GSTIN:

  • Aiva may generate customer invoices on behalf of the Partner, using:

    • The Partner’s registered business name and GSTIN
    • The product-wise HSN codes and applicable tax rates (as provided by the store)
    • The Partner’s declared place of supply and location

  • These invoices:

    • Are shared with customers via email/download
    • Are included in Aiva’s GSTR-8 as seller-specific data
    • Must be reported in the Partner’s own GSTR-1 and GSTR-3B

B. If the Partner has no GSTIN:

  • Aiva will issue a simplified invoice without GST breakup
  • The Partner will not be eligible for input tax credit (ITC)
  • TCS will not be deducted, but sales may still be reportable under aggregate turnover laws

It is the Partner’s responsibility to update their GSTIN in the Aiva dashboard as soon as it becomes available. Backdated credit claims may not be supported.

5. Partner’s GST Compliance Responsibilities

By accepting orders through Aiva, the Partner agrees to:

  • Maintain an active and valid GST registration if legally required
  • Update GSTIN and tax configuration (HSN, rate) in the Partner dashboard
  • Declare all sales made via Aiva in their monthly GST returns
  • Reconcile TCS credits from Aiva’s GSTR-8 with their GSTR-2A
  • File accurate tax returns (GSTR-1, GSTR-3B) in a timely manner

Aiva will not be liable for:

  • Penalties or notices received due to Partner-side tax mismatch
  • Inaccurate or outdated GSTIN/tax data entered by the Partner
  • Any denial of TCS credit due to delayed registration or wrong portal details

6. TCS Credit Reporting And Reconciliation

Every month, Aiva will:

  • File GSTR-8 showing seller-wise TCS deducted
  • Share a summary statement of TCS via the Partner dashboard or email
  • Upload the relevant data to the GSTN, which reflects in the Partner’s account under “TCS Credit”

The Partner may:

  • View and download this credit data
  • Claim it while filing GSTR-3B under Electronic Cash Ledger – TCS
  • Use it to offset GST liability (not for ITC claims)

If the Partner does not file GST returns or fails to reconcile:

  • The TCS credit may remain unused
  • GSTN may issue discrepancy notices under mismatch guidelines

7. Consequences of GST Non-Compliance

Failure to comply with applicable GST regulations may result in the following actions by Aiva or tax authorities:

A. Platform-Level Consequences:

  • Suspension of invoice generation for the Partner
  • Delay or non-reflection of TCS credits in the GST portal
  • Payout holds on Prepaid orders, pending resolution of tax discrepancies
  • Delisting or permanent ban if ordered by GST officers or legal authorities

B. Government-Level Consequences:

  • GSTN may issue notices to the Partner for:

    • Unclaimed TCS credits
    • Mismatch between GSTR-1, GSTR-3B, and GSTR-8
    • Suspected underreporting or misclassification of supply

  • The Partner may face:

    • Interest or penalty under CGST/SGST laws
    • Disqualification for future input tax credit (ITC) claims
    • Summons or audit requests as part of compliance review

Aiva will not be held liable for any penalties, interest, or legal consequences faced by the Partner due to their own GST lapses or omissions.

8. GST Audit And Tax Authority Cooperation

In case of an audit or official request from:

  • Central or State GST officers
  • GSTN data reconciliation teams
  • Tax tribunals or investigating agencies

Aiva reserves the right to:

  • Share relevant seller-level data, invoice records, and platform logs
  • Suspend payouts or store visibility until compliance is verified
  • Provide full cooperation to authorities under Indian law

The Partner agrees to:

  • Cooperate with any government inquiry initiated through Aiva
  • Share relevant purchase records or returns if requested
  • Ensure tax filings match the platform data reported by Aiva

9. Contact Information And Support

For help with:

  • Downloading your monthly TCS statement
  • Reconciling invoice values or tax data
  • Updating your GSTIN or correcting errors
  • General GST questions or dashboard issues

Please reach out to:

Aiva Private Limited 📍 Plot No. 287-A, Goyal Homes, G-2, Sector-B, Shahpura, Bhopal, Madhya Pradesh 462016 📧 Email: [Insert GST Support Email] 🕐 Support Hours: Monday to Saturday, 10:00 AM – 6:00 PM IST