Tag: gst on voucher

GST Article

Understanding Treatment of Vouchers under GST: New Perspective

byAdmin

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.

AARGST Article

Vouchers are Taxable as a Supply of Goods at the rate of 18%

byCA Bimal Jain

The Authority for Advance Ruling, Uttar Pradesh, in case of M/s Payline Technology Private Limited, ruled that Supply of Vouchers by the Applicant is taxable as supply of goods and the time of supply shall be decided as per Section 12 (2) of the CGST Act and the UPGST Act and will be taxed at 18% as per residual entry no. 453 of Notification No. 01/2017-Central Tax (Rate) dated June 28, 2017.