Gift Vouchers Under Gst

Vouchers are not defined in the act but its general definition is a small printed piece of paper that entitles the holder to a discount or that may be exchanged for goods or services.

Gift vouchers under gst. Since the pre gst era the taxability of gift vouchers or coupons as goods and not actionable claims has been a subject matter of litigation. Vouchers entitles customers to buy goods or services or avail discount from the respective issuer at the time of redemption. The cost of the gift is more than 200 exclusive of gst amount. Ltd has held that sodexo s meal vouchers cannot be subject to octroi or local body tax in maharashtra.

Time of supply in case of vouchers. Vouchers under gst regime. 5 4 the ppis under consideration are vouchers which are given. Hence ruled gst is certainly leviable on issuance of such gift cards by issuer.

The voucher gives a right to receive goods and services up to the value stated on or recorded in the voucher. If the gift voucher is for a specified supply product or service that includes gst the purchase is gst reportable and payable in the period in which the voucher is sold. Hence ruled gst is leviable on issuance of such gift cards. Gst for gift vouchers on specified supply items.

A voucher is considered an mrv for gst purposes if it meets all of the following conditions. If you had imported the gifts with gst suspended under a gst scheme such as the major exporter scheme mes input tax is regarded as claimed. Hence ruled gst is leviable on issuance of such gift cards. Rate of gst on vouchers.

The ppis under consideration are vouchers which are given for use in the retail outlets of kjil for purchase of jewellery i e. The supreme court in the case of sodexo svc india pvt. Hence supply of voucher qualifies as supply under section 7 of the cgst act specifically as supply of goods. The voucher must be presented or utilised to exchange for the goods and services acquired.

Issuing general gift prepaid vouchers redeemable against goods or services covered under gst law is not a non gst supply. The time of supply of goods is specified under section 12 of cgst tnsgst act and the time of supply of vouchers is specified in section 12 4. The voucher is sold for a consideration e g. For example if free voucher of rs 500 is provided on purchase of rs 1000.

And you had claimed input tax on the purchase or import of the gifts. Clearly indicating that vouchers are goods under cgst act. Gift vouchers in this scheme the vendor provides the vouchers as an instrument to be used for making payment of the consideration on the next purchase. Examples of vouchers are coupon token ticket license permit pass.

Gst will be liable to be paid on full value of supply.