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TMI Blog2021 (4) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... gument, with the provision in sub sections (4) of section 12 and 13, that deal with determining the time of supply for goods and services respectively, both use the term 'voucher', and therefore indicate that voucher relate to both goods and services. If vouchers are to be treated as actionable claims, they are only goods and not services. When a voucher is issued, though it is just a means of advance payment of consideration for a future supply, subsection (4) of section 12 and 13 determine the time of supply of the of the underlying good(s) or service(s). Voucher per se is neither a goods not a service. It is a means for payment of consideration - there is no need to determine whether voucher is an actionable claim to arrive at a conclusion that it is neither a goods nor a service. Voucher by GST law is recognized as an instrument of consideration (non-monetary form) for future supply. Regarding classification of voucher, since voucher is only an instrument of consideration and not goods or services, the same is not classifiable separately but only the supply associated with the voucher is classifiable according to the nature of the goods or services supplied in exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. The subject appeal has been filed under Section 100 (1) of the Tamilnadu Goods Services Tax Act, 2017/Central Goods Services Tax Act 2017 by Tvl. Kalyan Jewellers India Limited (hereinafter referred to as 'Appellant'). The appellant is registered under GST vide GSTIN 33AADCK6079K1Z8. The appeal is filed against the Order No. 52/ARA/2019 dated 25.11.2019 passed by the Tamilnadu State Authority for Advance ruling on the application for advance ruling filed by the appellant. 2.1 The Appellant is in the business of manufacturing and trading of Jewellery Products. As a part of sales promotion the Appellant introduced the facility of different types of Pre-Paid Instruments (PPI's) viz., Closed System PPIs, Semi-closed System PPIs, Open System PPIs through its retail outlets, third party PPI issuers and online portals to their Customers and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv) The questions raised at SI.No. 4,5,6 and 7 are not answered for the reason that the said questions are not admitted as this authority does not have jurisdiction. 4. Aggrieved by the above decision, the Appellant has filed the present appeal. The grounds of appeal are as follows: The voucher or PPI only have a redeemable face value and no intrinsic value capable of it being considered as marketable for the purpose of levy of GST. It is submitted that the amounts received upon such issuance of PPI's are treated and entered as 'Other Current Liabilities' in the statement of accounts, and only when the instruments are redeemed the amounts received are credited to the sales/revenue account of the Appellant. It is submitted that the PPI's are issued to the customers in card as well as digital formats and it is not sold to the customers. The PPI's are in the nature of actionable claims and not goods. It is submitted that if the PPI's are made liable to tax, it would amount to double taxation as GST is levied on the supply of jewellery made by the appellant also at the time of redemption of a voucher is against the provisions of Law as well as the E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s for advance payment of consideration for future supply of goods or services: (75) - 'money' means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit, draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that is held for its numismatic value; (118) - 'voucher' means an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services or both and where the goods or services or both to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument; 7.6 Voucher, being an instrument used as consideration to settle an application, is a type of money, and as long as such instrument is recognised by the Reserve Bank of India. Even if such voucher is not recognised by Reserv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of the gold voucher presently under our consideration. Since the gold voucher clearly indicates that the voucher can be redeemed for gold jewellery at a known rate of tax, gold voucher also falls under this category. Therefore, it is our view that the gold voucher (representing the underlying future supply of gold jewellery) would be taxable at the time of issue of the voucher. It must be emphasised that this interpretation does not result in double taxation as transfer of gold subsequently will not be subject to tax at the time of redeeming the voucher for gold, as the supply is deemed to have been done at the time of issue of voucher itself (section 12(4)). 7.12 Basing that taxing vouchers cannot be understood solely from the provisions contained in GST law, the appellants have urged us and brought in European Council directives, etc., that is to look into foreign legislation and jurisprudence. However, in Indian context, vouchers has cross-linkage to RBI master directions pertaining to Pre-Paid Instruments apart from the relevant contractual terms and conditions. Therefore, each and every case is to be examined critically based on the facts and circumstances and co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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