GST treatment of vouchers: vouchers are not supplies; agent commissions and ancillary service fees are taxable. Vouchers that qualify as RBI recognised pre paid instruments are treated as money and not as goods or services; vouchers that do not qualify function as actionable claims and likewise are neither supply of goods nor supply of services. Under a principal to principal trading model, trading margins on vouchers are not subject to GST, whereas commissions or fees paid to agents/distributors for distribution services constitute taxable supplies of services. Ancillary service fees are taxable, and amounts attributable to unredeemed vouchers (breakage) are not taxable absent an agreement treating non redemption as consideration.
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.
GST treatment of vouchers: vouchers are not supplies; agent commissions and ancillary service fees are taxable.
Vouchers that qualify as RBI recognised pre paid instruments are treated as money and not as goods or services; vouchers that do not qualify function as actionable claims and likewise are neither supply of goods nor supply of services. Under a principal to principal trading model, trading margins on vouchers are not subject to GST, whereas commissions or fees paid to agents/distributors for distribution services constitute taxable supplies of services. Ancillary service fees are taxable, and amounts attributable to unredeemed vouchers (breakage) are not taxable absent an agreement treating non redemption as consideration.
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