Become a Govt. Certified GST Practitioner in just 60 hrs. Register Now!

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?

Reply
Follow
Share

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