TaxTMI 
TaxTMI 
2026 (3) TMI 1047
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.... "7.8 Difference in P&L and GST Turnover: (xv) I confirm the demand of GST amounting to Rs. 12,66, 19,880/- (Rupees Twelve Crore Sixty Six Lakhs Nineteen Thousand Eight Hundred and Eighty Only), under the provisions of Section 73 of CGST Act, 2017 read with corresponding section of MGST Act, 2017 and relevant sections of IGST Act, 2017, as detailed in 7.8 above along with applicable interest under section 50 of the CGST Act, 2017 on M/s. Neha Piyush Shah (Trade Name - Neoniche). (xvi) I impose a penalty of Rs. 1,26,61,988/- {Rupees One Crore Twenty Six Lakhs Sixty One Thousand Nine Hundred and Eighty Eight only), under section 73 read with Section 122(2)(a) of the CGST Act, 2017, read with corresponding section of MGST ....
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....eration the definition of 'money' as defined under Section 2(75) of the CGST Act, which reads thus:- ""money" means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognised by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; 6. Mr. Shah further submits that the issue of a registered person dealing in vouchers, was the subject matter of consideration before the Karnataka High court in case of M/s. Prem....
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....ndustry, and in order to ensure uniformity in the implementation of the provisions of law across field formations, the Board, in exercise of its powers under Section 168(1) of the CGST Act, 2017 issued the said clarification. The relevant paragraph in the said circular is paragraph 3.7, wherein the Board clarified that irrespective of whether a voucher is covered as a prepaid instrument recognized by RBI or not, a voucher is just an instrument which creates an obligation on the supplier to accept it as consideration or part consideration and accordingly, transactions in vouchers themselves cannot be considered either as a supply of goods or as a supply of services. It was further clarified that the supply of underlying goods and/or services....
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....d the transactions in voucher themselves cannot be considered either as a supply of goods or as a supply of services. However, supply of underlying goods and/or services, for which vouchers are used as consideration or part consideration, may be taxable under GST. Issue 2 -What would be the GST treatment of transactions in vouchers by distributors/sub-distributors/agents etc.? 4.3 Where vouchers are distributed using distributors/sub-distributors/ agents commission/fee basis: In such cases, the transactions between the voucher issuer and the distributors/sub-distributors/agents are on principal-agency basis. These arrangements, as per contract/agreement between distributor/sub-distributor/agents and the voucher issuer may ....
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....ment, would be liable to GST at the applicable rate in the hands of the said service provider." 8. Mr. Shah would next submit that, considering the provisions of the aforesaid circular, the approach of respondent no. 2 would not be correct, particularly when the following observations have been made in the impugned order-in-original so as to tax the turnover:- "7.8 Difference in P&L and GST Turnover: (i) The noticee has contended that the difference is due to voucher sale and purchase and requested that the same is not leviable under GST. (ii) In this regard, I find that the sale and purchase of vouchers are falls under the scope of supply as prescribed in Section 7 of CGST Act, 2017. Further, I find that the n....
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....to us by Mr. Shah, that the amendment brought about to Section 12 of the CGST Act by the Finance Act, 2025, (notified on 17 September 2025) sub-section (4) of Section 12 has now been deleted. Section 12 provides for the 'time of supply of goods' and in such context, sub-section (4) as it earlier stood, provided as follows in regard to the supply of vouchers:- "(4) In case of supply of vouchers by a supplier, the time of supply shall be- (a) the date of issue of voucher, if the supply is identifiable at that point; or (b) the date of redemption of voucher, in all other cases." 12. In this view of the matter, the impugned order-in-original dated 26 December 2023, to the extent of the operative portion noted herei....