Menu
Type of Document: Circular
Notification Date: 31 December 2024
Relevant Act(s)/Rule(s): Central Goods and Services Tax Act, 2017, Central Goods and Services Tax Rules, 2017
Circular No.: 243/37/2024-GST
The circular clarifies GST implications for transactions involving vouchers, addressing ambiguity and ensuring uniformity.
Key points include:
1. Nature of Vouchers: Vouchers that are RBI-recognized prepaid instruments are treated as “money” and are excluded from GST. Non-RBI-regulated vouchers are considered “actionable claims” (excluding specified actionable claims) and are not treated as supply under GST.
2. Distribution Models: Vouchers traded under Principal-to-Principal arrangements are not taxable. Commission-based distributions attract GST on the commission earned by distributors/agents.
3. Additional Services: GST is applicable to additional services (e.g., advertisement, co-branding) provided to voucher issuers.
4. Unredeemed Vouchers (Breakage): Breakage amounts from expired vouchers do not constitute supply and are not taxable under GST.
The clarification ensures consistent tax treatment across field formations and mitigates disputes.
Notification Link: https://taxinformation.cbic.gov.in/view-pdf/1003257/ENG/Circulars
Disclaimer: The information contained in this Article is intended solely for personal non-commercial use of the user who accepts full responsibility of its use. The information in the article is general in nature and should not be considered to be legal, tax, accounting, consulting or any other professional advice. We make no representation or warranty of any kind, express or implied regarding the accuracy, adequacy, reliability or completeness of any information on our page/article.