Clarification on various issues pertaining to GST treatment of vouchers - reg

Last updated: 02 January 2025

Notice Date : 31 December 2024

Quick Summary

This notification provides clarification on several key issues regarding the Goods and Services Tax (GST) treatment of vouchers. It addresses concerns raised by the trade, industry, and field formations about whether voucher transactions constitute a supply of goods or services, the GST implications of trading vouchers by distributors, and the taxability of unredeemed vouchers (breakage). The aim is to resolve differing interpretations and reduce ambiguity and potential litigation.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs
GST Policy Wing

North Block New Delhi,
Dated the 31st December, 2024

To,
The Principal Chief Commissioners/ Chief Commissioners of Central Tax (All)
The Principal Directors General/ Directors General (All)

Madam / Sir,

Subject: Clarification on various issues pertaining to GST treatment of vouchers - reg.

References have been received from the trade and industry as well as the field formations seeking clarity on various issues with respect to vouchers such as whether transactions in voucher are a supply of goods and/or services, whether GST is leviable on trading of vouchers by distributor/sub-distributor and whether unredeemed vouchers (breakage) are taxable. It has been represented that the field formations are taking different views on these issues leading to ambiguity and litigations.

Official copy of the circular has been attached

FAQ :

The notification aims to clarify various issues concerning the GST treatment of vouchers, addressing ambiguities and differing interpretations.

The clarification covers whether voucher transactions are considered a supply of goods and/or services, the GST leviability on trading of vouchers by distributors/sub-distributors, and the taxability of unredeemed vouchers (breakage).

Clarification has been sought by the trade and industry, as well as by field formations.

The clarification is needed because field formations have been taking different views on these issues, leading to ambiguity and potential litigation.

The official copy of the circular has been attached to the notification.