GST on cash back received for redemption of credit card points
Yogesh Gupta (143 Points)
01 December 2023
Does GST applicable on cash back received on credit card redemption points?
2 Replies
Money Money
(433 Points)
Replied 01 December 2023
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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