Time of Supply of Services - Voucher [ Section 13(4) ]

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ny denomination. * As evident from the definition, had such 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 as per GST Act. Section 13 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 a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ces are provided, or agreed to be provided, continuously or on recurrent basis, under a contract, for a period exceeding 3 months with periodic payment obligations and includes supply of such services as the Government may notify. * In case of cessation of supply of services before completion of supply, the invoice (to the extent of the supply made before such cessation) should be issued at the time when the supply ceases [Section 31(6)]. Time of supply of Vouchers exchangeable for services, [ Section 13(4) of CGST Act 2017 ] Vouchers 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 ar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cumentation, 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 actual handing over of the goods or the actual provision of the services in return for a single-purpose voucher accepted as consideration or part consideration by the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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 cannot be set up and operated by an entity without the prior approval of RBI. [RBI Circular No. RBI/DPSS/2017-18/58, dated 11th October, 2017 for master directions ....