You are here: Home » Economy & Policy » News » GST
Business Standard

Tamil Nadu AAAR clears air over GST on vouchers, says taxable on redemption

As such, GST would be imposed on goods and services bought through vouchers

Topics
Tamil Nadu | GST | GST Bill

Indivjal Dhasmana 

GST
Photo: Shutterstock

The appellate authority for advance rulings (AAAR) has cleared the confusion over taxability of vouchers such as Amazon gift cards, Shoppers Stop vouchers, Zara Vouchers etc. under the goods and services tax (GST) system.

It ruled that will be levied on the underlying goods and services at the time of redemption of vouchers, Abhishek Jain, partner at EY, said.

As such, would be imposed on goods and services bought through vouchers.

Earlier, authority for advance rulings (AAR) of the state had ordered that the supply of voucher itself will be taxable at varied rates depending on whether it paper based or magnetic strip based. The former will attract 12 per cent and the latter 18 per cent GST, it had ruled.

Jain said,"The taxability of vouchers has always been a grey area, both under the pre-and post-GST regime. The ruling by TN AAR had further added to the confusion. The ruling by AAAR has provided appropriate clarity to industry on the taxability of vouchers."

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, April 01 2021. 19:50 IST
RECOMMENDED FOR YOU
.