TaxTMI 
TaxTMI 
Is gst applicable for a bonus received from service rendered, which is not a part of invoice?
if so, invoice must be issued for the bonus amount like normal invoice or what is the category it would fit in?
Bonus attracts gst
07 Apr 2025 
4 Replies 
3009 Views Asked by
GST on bonus payments: bonuses linked to services are taxable and must be invoiced and taxed like the underlying service.
GST applies to bonuses that are additional consideration linked to a supplied service; such payments form part of the taxable consideration and must be treated under the same GST classification and rate as the original service. When paid separately, the service provider should issue a separate invoice for the bonus identifying it as additional consideration for the relevant service. Liability turns on factual nexus between the bonus and the service-where connected, GST is payable on the bonus. (AI Summary)
GST applies to bonuses that are additional consideration linked to a supplied service; such payments form part of the taxable consideration and must be treated under the same GST classification and rate as the original service. When paid separately, the service provider should issue a separate invoice for the bonus identifying it as additional consideration for the relevant service. Liability turns on factual nexus between the bonus and the service-where connected, GST is payable on the bonus. (AI Summary)