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TMI Blog2023 (2) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... e not identified at the time of issuance. Vouchers are distributed to its employees or the customers which can be redeemed by them. These PPIs do not permit cash withdrawal, irrespective of whether they are issued by banks or non-banking Companies and they can be issued only with the prior approval of RBI - In substance the transaction between the assessee and his clients is procurement of printed forms and their delivery. The printed forms are like currency. The value printed on the form can be transacted only at the time of redemption of the voucher and not at the time of delivery of vouchers to assessee s client. Therefore, the issuance of vouchers is similar to pre-deposit and not supply of goods or services. Hence, vouchers are neither ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs to their employees in the form of incentive or to other beneficiaries under promotional schemes for use as consideration for purchase of goods or services or both as specified therein. 4. Assessee submitted an application [FORM GST ARA 01] dated February 23, 2021 before the Karnataka Authority for Advance Ruling, for a Ruling whether the Pre-paid Payment Instruments [PPI] or vouchers themselves, or the act of supplying them is taxable, and at what stage, for each of the three categories of transactions undertaken by the assessee and if the transaction were liable to tax, under which category and what would be the rate of tax applicable? 5. The Advance Ruling Authority, vide Order [KAR/ADRG 37/2021] dated July 30, 2021 has rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le claim is neither goods nor services as defined in Schedule-III of the CGST Act; actual supply of goods or services takes place only when the voucher is presented for redemption by a customer to a supply of goods and services except when the voucher itself identifies the goods or services for the value mentioned in the voucher. The voucher would remain to be an instrument till the time of redemption. Therefore, the impugned Order passed by the Advance Ruling Authority is contrary to law. 7. Shri. G. Shivadass has placed reliance on following authorities: Sodexo SVC India Private Ltd. Vs. State of Maharashtra [2016 (331) ELT 23 (SC) (para 15)], M/s. Kalyan Jewellers India [AAAR/11/2021 (para 7.9)a] (Appeal f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself cannot be treated as goods or services. 12. Thus, the question that falls for consideration is, whether in the facts of this case, vouchers themselves are chargeable to tax at the time of supply or chargeable when goods and services are redeemed? 13. Under Section 2(75) of the CGST Act, 2017, Money is defined as under: 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 recognised 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot leviable to tax. 17. In Union of India Vs. Delhi Chit Fund Association W.P. (C) 4512/2012 , the Delhi High Court has held thus: 10. A mere transaction in money represents the gross value of the transaction. But what is chargeable to service tax is not the transaction in money itself since it can by no means be considered as a service. 18. It is clear from the above authority that mere transaction of money or actionable claim, no services are involved and therefore no tax is leviable. 19. In Sodexo SVC India Pvt. Ltd (supra) , relied upon by the assessee, the Apex Court held as follows: 15. We have already taken note of the nature of the transaction. After going through the relevant provisions and the principl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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