Voucher transactions not treated as supply; distribution margins and agency commissions have distinct GST consequences. Transactions in vouchers do not constitute a supply of goods or services: RBI recognised pre paid instruments are treated as money and excluded from goods/services, and non PPI vouchers are actionable claims under Schedule III and likewise not supplies; redemption of underlying goods/services remains taxable. Principal to principal trading of vouchers is not leviable to GST, whereas agents earning commission are taxable on the commission as a supply of services. Ancillary services to voucher issuers are taxable; unredeemed vouchers (breakage) are not taxable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Voucher transactions not treated as supply; distribution margins and agency commissions have distinct GST consequences.
Transactions in vouchers do not constitute a supply of goods or services: RBI recognised pre paid instruments are treated as money and excluded from goods/services, and non PPI vouchers are actionable claims under Schedule III and likewise not supplies; redemption of underlying goods/services remains taxable. Principal to principal trading of vouchers is not leviable to GST, whereas agents earning commission are taxable on the commission as a supply of services. Ancillary services to voucher issuers are taxable; unredeemed vouchers (breakage) are not taxable.
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