TaxTMI 
TaxTMI 
Time of Supply of Goods – Voucher
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.... vouchers or gift cards been capable of being converted into equivalent money, then such instruments could have qualified as 'money'. But vouchers or gift cards (closed and semi-closed pre-payment instruments) can be redeemed only against goods or services. Moreover, 'money' as a legal tender has acceptability across the length and breadth of the country, whereas a voucher can be redeemed only at the premises of the issuer or the participating merchants. Time of Supply * Section 12 of CGST 2017 provides for the determination of time of supply in the situations of Supply of vouchers that can be used to pay for goods. * Before starting the analysis of about time of supply of goods, we should read time limit of issue of invoice as p....
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....hers exchangeable for goods Section 12(4) of CGST Act 2017 * Voucher are commonly used for transaction in the Indian economy. A shopkeeper may issue vouchers for specific supply i.e., supply is identifiable at the time of issuance of voucher. In trade parlance, these are known as single purpose vouchers. * Time of supply is different in case of single purpose voucher and in the case of general-purpose voucher. In case of supply of vouchers the time of supply is - * If supply is identifiable then Date of issue of voucher. (Single purpose voucher) * If supply is not identifiable then Date of redemption of voucher. (General purpose voucher) Examples:- Example 1 :- Vouchers for pressure c....
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....r services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument. * Single-purpose voucher means a voucher where the place of supply of the goods or services to which the voucher relates, and the VAT due on those goods or services, are known at the time of issue of the voucher. * Multi-purpose voucher means a voucher, other than a single-purpose voucher. As per Article 30b * Each transfer of a single-purpose voucher made by a taxable person acting in his own name shall be regarded as a supply of the goods or services to which the voucher relates. The ....
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....to the taxability of vouchers under the GST law, it is pertinent to understand the manner in which such payment instruments are regulated in India. "Payment system" means a system that enables payment to be effected between a payer and a beneficiary, involving clearing, payment or settlement service or all of them, but does not include a stock exchange. "Payment system" includes the systems enabling credit card operations, debit card operations, smart card operations, money transfer operations or similar operations. [Section 2(1)(i) of the Payment and Settlement Systems Act, 2007] Pre-paid vouchers are regulated by the Reserve Bank of India ("RBI") in India as Prepaid Payment Instruments ("PPI") under the PSS Act and such instruments ca....