TaxTMI 
TaxTMI 
A GTA receives loyalty point in monetary value against purchase of diesel for its vehicles. whether loyalty points earned in monetary value is liable for GST even though Diesel is still outside the purview of GST.
GST liability on Loyalty earned against purchase of fuel
11 Apr 2024 
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GST on loyalty points may arise depending on characterization and time of supply, affecting diesel-related rewards.
GST on loyalty points issued against diesel depends on characterisation and timing: points that qualify as an actionable claim during their validity are outside Schedule III and not taxable; points that cease to be actionable claims after expiry may be taxable as a act of toleration. Where the loyalty instrument is a coupon or discount, if the supplier is identifiable at issuance GST may arise at issuance; if not, time of supply is on redemption. Scheme terms and redemption mechanics therefore control GST liability. (AI Summary)
GST on loyalty points issued against diesel depends on characterisation and timing: points that qualify as an actionable claim during their validity are outside Schedule III and not taxable; points that cease to be actionable claims after expiry may be taxable as a act of toleration. Where the loyalty instrument is a coupon or discount, if the supplier is identifiable at issuance GST may arise at issuance; if not, time of supply is on redemption. Scheme terms and redemption mechanics therefore control GST liability. (AI Summary)