GST on E-voucher

[DEEPAK SHARMA]

Paper re-deem Vaoucher : GST @ 12%

Plastic re-deem Voucher : GST @ 18%

E-re-deem voucher : GST @ ??????

[KASTURI SETHI]

It is not a question of paper voucher or plastic voucher oe e-voucher. All are instruments. Rate of tax depends upon the nature of supply of goods or service against which the voucher is redeemed.If identifiable, the time of supply will be date of issue and if not identifiable at the time of issue of voucher, the time of supply will be the date when it redeemed. It is also pertinent to go through definition of 'Voucher' .

Section 2 (118) of CGST Act “voucher” means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument;

[YAGAY andSUN]

Tax Rate of GST on vouchers

In the case of paper based gift vouchers classifiable under CTH 4911 the applicable rate is 6% CGST as per Sl.No. 132 of Schedule II of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and 6% SGST as per Sl.No. 132 of Schedule II of Notification Ms. No. II(2)/CTR/532(d-4)/2017 vide G.O. (Ms) No. 62 dated 29.06.2017 as amended.

In the case of gift cards, the same are classifiable under CTH 8523 and the applicable rate is 9% CGST as per Sl.No. 382 of Schedule III of the Notification No. 1/2017-C.T.(Rate) dated 28.06.2017 and 9% SGST as per Sl.No. 382 of Schedule III of Notification Ms. No. II(2)/CTR/532(d-4)/2017 vide G.o. (Ms) No. 62 dated 29.06.2017.

AI Summary

GST on vouchers: tax rate follows the nature of the underlying supply and time of supply depends on identifiability. GST on vouchers is determined by the nature of the supply and by whether the goods, services or potential suppliers are identifiable at issue. If identifiable, the time of supply is the date of issue; if not, the time of supply is the date of redemption. The statutory definition treats a voucher as an instrument accepted as consideration or part consideration where the goods, services or potential suppliers are indicated on the instrument or in related documentation, including terms and conditions of use. Rates depend on tariff classification of the voucher.