GST is applicable on cash back received on credit card redemption points in India12. The cash back amount is considered as a discount or a benefit given by the credit card issuer, and hence it is subject to GST at 18%1. However, this does not apply to the loyalty or other points programs that are collected by the employees when travelling on employer-reimbursed business trips or incurring other business-related expenses in Canada3. In that case, the redemption of points is generally a taxable benefit for the employee
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