Transferable voucher trading treated as supply of goods, with general rules governing time of supply and valuation.

Freely transferable vouchers held and traded by a person other than the issuer were treated as movable property and, on sale for consideration in the course of business, as a supply of goods. The special voucher-specific provisions for time of supply and valuation were held to apply to the issuer where the underlying supply is identifiable, not to a trader in vouchers. Accordingly, the general rule for goods governed the time of supply, and value was determined under transaction value principles. The ruling also applied the residual tax entry, resulting in taxability at 9% CGST and 9% UPGST.

---

---

Issues: (i) Whether vouchers purchased and sold by the applicant are taxable as supply of goods; (ii) Whether the time of supply of such vouchers is governed by the rule applicable to vouchers or by the general rule for goods; (iii) Whether the applicable rate of tax and value of supply are to be determined under the residual entry and transaction value principles.

Issue (i): Whether vouchers purchased and sold by the applicant are taxable as supply of goods.

Analysis: Vouchers held and traded by the applicant were found to be freely transferable instruments having value and ownership, and therefore constituted movable property. They were distinguished from money because they were not used by the applicant to settle an obligation, and from actionable claims because they were in the possession of the claimant and did not answer the statutory meaning of actionable claim. Their sale involved transfer of title for consideration in the course of business, bringing the transaction within the scope of supply. The authorities relied upon by the applicant were treated as inapplicable on the facts, as they concerned the issuer or non-transferable vouchers rather than a trader in vouchers.

Conclusion: The vouchers traded by the applicant were held taxable as supply of goods.

Issue (ii): Whether the time of supply of such vouchers is governed by the rule applicable to vouchers or by the general rule for goods.

Analysis: The specific time-of-supply provision for vouchers was treated as applicable to the issuer where the underlying supply is identifiable at issuance, whereas the applicant was only a trader of vouchers. On that reasoning, the special voucher rule was held not to govern the applicant's transactions. The general rule for time of supply of goods was therefore applied.

Conclusion: The time of supply was held to be determined under Section 12(2) of the Central Goods and Services Tax Act, 2017.

Issue (iii): Whether the applicable rate of tax and value of supply are to be determined under the residual entry and transaction value principles.

Analysis: Since the vouchers were treated as taxable goods in the applicant's hands, the rate was applied under the residual entry mentioned in the ruling. For valuation, the voucher-specific valuation rule was treated as applicable to the issuer, not to the trader. The value of supply was therefore directed to be determined under the general valuation provisions on transaction value.

Conclusion: The vouchers were held taxable at 9% CGST and 9% UPGST, and their value of supply was held to be governed by Section 15 of the Central Goods and Services Tax Act, 2017.

Final Conclusion: The advance ruling answered all referred questions against the applicant and confirmed taxability of the voucher trading activity as a supply of goods, with general rules applying to time of supply and valuation.

Ratio Decidendi: A freely transferable voucher held and traded for consideration by a person other than the issuer is taxable as goods, while the special voucher-specific time and valuation provisions apply to the issuer and not to a trader.

---