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TMI BlogTime of Supply of Services - VoucherX X X X Extracts X X X X X X X X Extracts X X X X ..... uld have qualified as money . But, vouchers or gift cards (closed and semi-closed pre-payment instruments) can be redeemed only against goods or services. Moreover, money as a legal tender has acceptability across the length and breadth of the country, whereas a voucher can be redeemed only at the premises of the issuer or the participating merchants. Time of supply as per GST Act. Section 13 of CGST 2017 provides for the determination of time of supply in the situations of Supply of vouchers that can be used to pay for goods. Before starting the analysis of about time of supply of goods, we should read time limit of issue of invoice as per section 31 of CGST Act 2017 . Time limit for issuance of invoice for supply of services under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may notify. In case of cessation of supply of services before completion of supply, the invoice (to the extent of the supply made before such cessation) should be issued at the time when the supply ceases [Section 31(6)]. Time of supply of Vouchers exchangeable for services, [ Section 13(4) of CGST Act 2017 ] Vouchers are commonly used for transaction in the Indian economy. A shopkeeper may issue vouchers for specific supply i.e. supply is identifiable at the time of issuance of voucher. In trade parlance, these are known as single purpose vouchers. In case of supply of vouchers the time of supply is- If supply is identifiable then Date of issue of voucher. If supply is not identifiable then Date of redemption of voucher. Examples: - Time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a single-purpose voucher. As per Article 30b Each transfer of a single-purpose voucher made by a taxable person acting in his own name shall be regarded as a supply of the goods or services to which the voucher relates. The actual handing over of the goods or the actual provision of the services in return for a single-purpose voucher accepted as consideration or part consideration by the supplier shall not be regarded as an independent transaction. Where a transfer of a single-purpose voucher is made by a taxable person acting in the name of another taxable person, that transfer shall be regarded as a supply of the goods or services to which the voucher relates made by the other taxable person in whose name the taxable person is acting. Whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment and Settlement Systems Act, 2007] Pre-paid vouchers are regulated by the Reserve Bank of India ( RBI ) in India as Prepaid Payment Instruments ( PPI ) under the PSS Act and such instruments cannot be set up and operated by an entity without the prior approval of RBI. [RBI Circular No. RBI/DPSS/2017-18/58, dated 11th October, 2017 for master directions relating to issuance and operation of prepaid payment instruments] RBI identifies three types of PPIs Closed System PPIs, Semi-closed System PPIs and Open System PPIs i) Closed System PPIs are issued by an entity for facilitating the purchase of goods or services from that entity only and are not classified as a payment system requiring approval by the RBI. As these instruments cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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