CASHBANK FROM BANK

[RAVI MUNDRA]

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

[Sadanand Bulbule]

Mere cash transactions towards " expenses" via Corporate Credit Card are outside the scope of "supply" under Section 7 of the GST Act. In a way, it is a motivational income for you for doing better business with that Bank. Such income is not consideration as defined under Section 2 [31] and therefore it not liable for GST.

[Shilpi Jain]

There is no supply that you are making for getting this cashback

It is in the nature of a discount. Not liable to GST

AI Summary

Cashback not a taxable supply; corporate credit card rewards typically outside GST scope and treated as discount.
Bank cashbacks credited to a corporate credit card for business spending are characterised as a reward or discount by the bank and do not constitute "consideration" for a supply by the corporate cardholder; accordingly, such cashback is treated as outside the scope of GST and not liable to tax under the advisers' analysis.