Understanding Treatment of Vouchers under GST: New Perspective
The circular outlines two primary models for voucher distribution, each carrying distinct GST implications. In the Principal-to-Principal (P2P) model, a distributor might purchase festival gift vouchers and earn margin. The margin so earned by the distributor is not subject to GST since the trading of vouchers itself is neither a supply of goods nor supply of services . In contrast, under the commission-based model , an agent helping distribute restaurant vouchers and earning a 5% commission on sales would need to pay GST on their commission income, as it represents a service provided to the voucher issuer.