TaxTMI 
TaxTMI 
2018 (7) TMI 1421
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....cals Pvt. Ltd. (NICE). The applicant is managing the customer loyalty programme for its clients/partners such as NICE, which is based on issuance of reward points, also known as payback points by the applicant to end customers. These reward/payment points have value of 0.25 INR each. 2. The party has submitted a copy of the Agreement with M/s Nice Chemicals Pvt. Ltd. (NICE), as a representative Agreement in support of its argument. Since this Agreement made with a specific partner/ client, namely, NICE, this Agreement may be considered as the prototype of all Agreements made with various clients/ partners and all discussions regarding the Agreement is to be taken as relevant to and applicable for all the Agreements entered into by th....
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.... by LSRPL 4. The question for advance ruling is that whether this amount of issuance fee retained/forfeited by LSRPL, would amount to consideration for actionable claims and subject to GST The text of the questions raised by the applicant is as under: a) Whether the value of points forfeited of the applicant on which money had been paid by the issuer of points on account of failure of the end customers to redeem the payback points within their validity period would amount to consideration for 'actionable claim' other than lottery, gambling or betting and therefore would not qualify as supply of either goods or services in terms of Section 7 read with schedule III of the Central Goods and Services Act, 2017, Haryana Goods and Servi....
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....ty is not in possession of the claimant it will be actionable claim but if it is in his possession of enjoyment. It will not be actionable claim but a chose in possession, in the present case the pay back points are very much in the possession of the customers. Therefore, they cannot be termed as actionable claim. Hence, would attract GST. (b) Yes, it would attract GST under the CGST, HGST or IGST Act as applicant received Issuance fees from the partners on issuance of payback points @ 0.25 INR per payback point. Since these payback points are issued in exchange of some consideration and acts as an discount for the customers, who uses these payback points and the applicant transfers the consideration attached with payback points to the ven....
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....unds of relief whether such debt or beneficial interest be existent, accruing or conditional or contingent 8. Further, Section 2 (52) of the CGST/HGST Act, defines goods as every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; It is also to be noted that Schedule III to the CGST Act, 2017 provides for activities or transactions which shall be treated neither as supply of goods nor as supply of services. Point 6 in schedule III includes actionable claims other than lottery, betting and gambling. Therefore, such actionable claims which are not lottery, bet....
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....ack points, i.e. issuance fee given by partners and lying with LSRPL, which is retained by LSRPL in the name of forfeiting reward/payback points is nothing but revenue of LSRPL coming from the respective "partners" which has been earned by them owing to the activities of their providing services to the said "partners" through the loyalty programmes run by LSRPL 12. Even from the clauses of agreement between LSRPL and the "partners", it is evident money equivalent of reward points expired/ not redeemed by customers/forfeited after expiry, would be retained by LSRPL. Thus, the agreement itself provides for revenue to LSRPL, in shape of retaining the issuance fee. In the event of the forfeiture, the Issuance fee received by the applicant from....