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GST rate for sodexo coupon

Rahul Kr Agarwal (Articled Trainee) (21 Points)

14 August 2017

what is the sac/hsn code for sodexo
and Gst rate for the same.

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SUMIT SOMANI (Service) (50 Points)
Replied 07 September 2017

GST will not be applicable on the face value of vouchers issued by Sodexo to its clients or subsequently by employer to its employees, considering the definition of ‘services’ and ‘money’ under CGST Act. As per CGST Act :- “Services means anything other than goods, money and securities…..” “money” means Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveler cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; Section 4 of Payment and Settlement System Act, 2007 (PSS)provides that no person other than RBI shall commence or operate a payment system except under and in accordance with an authorization issued by RBI under the provisions of PSS Act. Section 7 of PSS Act grants power to RBI to issue an authorization for operating payment system Sodexo have been granted authorization in terms of Section 7 of PSS for operation of payment system by issuance of their Meal & Gift Voucher & Smart Card in the form of paper based vouchers & Smart Card or Smart Meal card. Hence, as money has been excluded from the definition of services and Sodexo meal vouchers/meal cards fall within the definition of instrument recognized by the Reserve Bank of India, any value loaded on it fall within the definition of money. Hence face value of Sodexo vouchers shall continue to be outside GST.

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Hanok Yadav (3 Points)
Replied 04 June 2019

We given sodexo meals coupons issued by employer to employees , sodexo raised a invoice on employer, can employer take gst input on invoice raised by sodexo