TaxTMI 
TaxTMI 
GST liability on Loyalty earned against purchase of fuel
X X X X Extracts X X X X
X X X X Extracts X X X X
....ST liability on Loyalty earned against purchase of fuel<br> Query (Issue) Started By: - SUBRATA RAY Dated:- 11-4-2024 Last Reply Date:- 30-5-2024 Goods and Services Tax - GST<br>Got 6 Replies<br>GST<br>A GTA receives loyalty point in monetary value against purchase of diesel for its vehicles. whether loyalty points earned in monetary value is liable for GST even though Diesel is still outside the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....purview of GST. Reply By Amit Agrawal: The Reply: Who is paying the 'loyalty points', on what purpose & what is the usage of these loyalty points? Moreover, it is unclear (at-least to me) whether the query raised is from point of view of receiver of loyalty points (i.e. GTA) or from point of provider (who-so it may be) of 'loyalty points'. Request you to kindly elaborate. Repl....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y By KASTURI SETHI: The Reply: It is just like coupons. You may say sale-promotion of non-GST goods. Now how these coupons are redeemed by the buyer that matters i.e. determinant factor. Pl. elaborate your query for a comprehensive reply. Reply By SUBRATA RAY: The Reply: Loyalty points redeemed against purchase of NON GST supply I.e purchase of diesel Reply By KASTURI SETHI: The Reply: If l....
X X X X Extracts X X X X
X X X X Extracts X X X X
....oyalty points are redeemed within specified period, these are actionable claims and hence neither goods nor services are as per Schedule-III of CGST Act. However, if redeemed after expiry of the specified period i.e. validity period is over, it will not fall under the definition and scope of actionable claim. Then these will be classified under 'tolerating an act ' and will be taxable. Pl....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... go through the following decisions of AAR Haryana and AAAR Haryana (i) 2018 (7) TMI 1421 - AUTHORITY FOR ADVANCE RULING - HARYANA - IN RE : LOYALTY SOLUTIONS AND RESEARCH PRIVATE LIMITED (ii) 2019 (2) TMI 1004 - APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA - IN RE : LOYALTY SOLUTIONS AND RESEARCH PVT. LTD. Reply By Shilpi Jain: The Reply: These loyalty points can be looked like one type o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f discount only. It should not entail any liabilities. Though it also depends on how this scheme is worded and given effect to. Reply By Ganeshan Kalyani: The Reply: I agree with the views of the expert. It is a kind of discount we can say, which is to be adjusted against future supply. The only thing here is that there is no credit note but only a loyalty point. Loyalty point is a kind of coupo....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n. Bank also give points on usage of credit card. The points can be converted into a coupon and the same can be used for purchase of things (any item, say cloth, groceries etc). The time of supply for coupon is - when supplier is determined then that point is the taxable event and when supplier is not identified then time of supply would be the time of redemption of such coupon. Here in this case ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the supplier is same (ie known at the time of supply) so GST would be applicable at the time of giving loyalty point.<br> Discussion Forum - Knowledge Sharing ....