Quick Summary
The Central Board of Indirect Taxes and Customs (CBIC) has issued Circular No. 243/37/2024-GST, dated December 31, 2024, to provide clarity on several issues related to the Goods and Services Tax (GST) treatment of vouchers. This circular aims to resolve ambiguities surrounding the classification, taxation, and redemption of vouchers under the GST framework. References have been received from the trade and industry as well as the field formations seeking clarity on various issues with respect
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FAQ :
The circular aims to provide clarity on several issues related to the GST treatment of vouchers, including their classification, taxation, and redemption, to resolve ambiguities and ensure uniform application of rules.
Transactions in vouchers are generally considered neither a supply of goods nor a supply of services, especially if the voucher is recognised as 'money' by the RBI or falls under the category of actionable claims other than specified ones.
If distributors sell vouchers on a Principal-to-Principal basis, their trading margin is not subject to GST. However, if they act as agents and receive commission or fees for distributing vouchers, GST is payable on that commission/fee as a supply of services.
No, GST is not applicable to the amount attributable to unredeemed vouchers (breakage). This is because there is no supply of goods or services when a voucher is not redeemed, and the retained amount is not considered consideration for any supply.
Any additional services, such as advertisement, co-branding, or marketing, provided to the voucher issuer for a fee or charge are liable to GST at the applicable rate in the hands of the service provider.
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