We are making payment of some expenses related to business via Corporate Credit Card. The bank gives us cashback of 1500 per month if we uses 100000 in a month. Cashback amount directly credited to our card and we can use this on next payment. Currently we are showing this as a Cashback income under other income head.
As as corporate are we liable to for any GST Liability
Cashback from corporate credit card use not subject to GST; seen as discount, not 'supply' under GST Act. A corporate entity inquired whether cashback received from a bank for using a corporate credit card is subject to GST liability. The cashback is credited directly to the card upon reaching a spending threshold. Two responses clarified that such cashback is not considered a 'supply' under the GST Act and is instead viewed as a motivational or discount income. Therefore, it does not constitute consideration as defined in the GST Act and is not liable for GST. (AI Summary)
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