Gst for iisue & redeem of c oupon

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(Querist)
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14 June 2019 RESPECTED SIR

WE HAVE DEVELOPED DISCOUNT COUPON APPLICATION WHEREIN REGISTERED SUPPLIER CAN PUT THEIR DISCOUNT COUPON & CUSTOMER CAN USE DISCOUNT COUPON AT ANOTHER REGISTERED BUSINESSMAN WITH US.

BUSINESSMAN WILL HAVE TO MAINTAIN PREPAID ACCOUNT WITH US .

FROM PREPAID ACCOUNT WE WILL DEDUCT FOLLOWING AMOUNT AS UNDER:-

AT THE TIME OF ISSUE :-RS.1

CUSTOMER CAN REDEEM THAT DISCOUNT COUPON AT ANOTHER REGISTERED BUSINESSMAN & NOT SAME BUSINESSMAN AT TIME OF NEXT PURCHASE:

AT THE TIME OF REDEMPTION RS.25 WILL BE DEDUCTED FROM BUSINESSMAN

OUT OF THAT RS.25, RS.20 WILL BE CREDITED TO CUSTOMER ACCOUNT AS LOYALTY POINTS

I WANT TO KNOW POINT OF SUPPLY UNDER GST FOR ABOVE MENTIONED TRANSACTION :-

1) WHETHER GST WOULD BE APPLICABLE AT TIME OF MAKING PREPAID BALANCE OR DEDUCTING RS.1 ON ISSUE OF DISCOUNT COUPON ?

2) WHETHER ANY GST LIABILITY WILL ARISE AT TIME OF REDEEM OF DISCOUNT COUPON AND IF YES ON WHAT AMOUNT RS.25 OR RE.5 ?

PLEASE HELP ME IN THIS REGARD

THANKS IN ADVANCE

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2019 1 GST WOULD BE APPLICABLE AT TIME OF MAKING PREPAID BALANCE.(GST applicable on advance payment for services)
2 GST LIABILITY WILL ARISE AT TIME OF REDEEM OF DISCOUNT COUPON AMOUNT RS.25.(Adjust it against GST paid on advance above. No need for this GST payment again)

CA jignesh daiya

CA jignesh daiya

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15 June 2019 RESPECTED SIR
THANKS FOR REPLY
BUT THIS COUPON ARE USED FOR PURCHASING GOODS FROM BUSINESSMAN
AND IT IS TREATED AS DISCOUNT COUPON
STILL GST WOULD BE APPLICABLE AT REEDEEM ALSO ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2019 It's a marketing service provided for Rs 25 GST applicable

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