Quick Summary
Hello, GST enthusiasts! If you've ever found yourself scratching your head about the GST rules for vouchers, you're not alone. The GST Policy Wing has come to the rescue with a new circular that finally clears the air about the GST treatment of vouchers. And guess what? We're going to break it down
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FAQ :
No, vouchers are neither considered goods nor services for GST purposes. They are treated as payment instruments that create an obligation for the supplier to accept them as consideration for goods or services.
GST is generally not applicable if the voucher is recognised by the RBI as a pre-paid instrument (like a wallet balance or gift card), as it's then considered money. It's also not applicable if the voucher is classified as an actionable claim.
In a Principal-to-Principal model, where a distributor buys vouchers at a discount and sells them at a margin, it's considered a pure trading activity. No GST is applied to the sale of the voucher itself.
If distributors or agents work on a commission basis, GST is applicable on the commission or fee they earn for facilitating the voucher distribution. They are considered middlemen, not owners of the voucher.
No, there is no GST on unredeemed vouchers. Since no goods or services are supplied for these unused vouchers, the issuer cannot charge GST on them.
Yes, any additional services provided for voucher distribution, such as marketing, customization, or customer support, are taxable under GST at the applicable rates.
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