TaxTMI 
TaxTMI 
we are providing Rent Cab Services. we received incentive from client due to good services provided. Whether GST applicable on such incentive and what is rate of GST ?.
GST ON INCENTIVE RECEDIVED ON GOOD SERVICES
04 Jun 2020 
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GST applicability on incentives: voluntary tips may be outside supply while integrated incentives can attract tax.
Whether incentives or tips received by a rent a cab provider constitute consideration for a taxable supply. One position treats client incentives as integrated consideration and taxable at the service rate; a contrary position treats voluntary tips as outside the supply and not taxable. Key determinants are contractual inclusion, mode of payment, voluntariness, and the causal nexus between the service and the incentive. (AI Summary)
Whether incentives or tips received by a rent a cab provider constitute consideration for a taxable supply. One position treats client incentives as integrated consideration and taxable at the service rate; a contrary position treats voluntary tips as outside the supply and not taxable. Key determinants are contractual inclusion, mode of payment, voluntariness, and the causal nexus between the service and the incentive. (AI Summary)