Voucher transactions not treated as supply under GST; tax applies on redemption, commissions and ancillary services taxed. Vouchers themselves are not a supply under GST: where covered as pre paid instruments recognised by the central bank they constitute money and are excluded from supply; where not so covered they qualify as actionable claims and similarly are not treated as supply. GST applies on the underlying goods or services upon redemption. Distribution is GST neutral if conducted on a principal to principal trading basis, whereas commissions or fees paid to agents/distributors acting for the issuer are taxable as services. Ancillary services to the issuer are taxable, while breakage from unredeemed vouchers is not taxable absent any agreement creating 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.
Voucher transactions not treated as supply under GST; tax applies on redemption, commissions and ancillary services taxed.
Vouchers themselves are not a supply under GST: where covered as pre paid instruments recognised by the central bank they constitute money and are excluded from supply; where not so covered they qualify as actionable claims and similarly are not treated as supply. GST applies on the underlying goods or services upon redemption. Distribution is GST neutral if conducted on a principal to principal trading basis, whereas commissions or fees paid to agents/distributors acting for the issuer are taxable as services. Ancillary services to the issuer are taxable, while breakage from unredeemed vouchers is not taxable absent any agreement creating consideration.
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