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TMI BlogGST liability on Loyalty earned against purchase of fuelX X X X Extracts X X X X X X X X Extracts X X X X ..... A GTA receives loyalty point in monetary value against purchase of diesel for its vehicles. whether loyalty points earned in monetary value is liable for GST even though Diesel is still outside the purview of GST. - Reply By Amit Agrawal - The Reply = Who is paying the 'loyalty points', on what purpose what is the usage of these loyalty points? Moreover, it is unclear (at-least to me) whet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her the query raised is from point of view of receiver of loyalty points (i.e. GTA) or from point of provider (who-so it may be) of 'loyalty points'. Request you to kindly elaborate. - Reply By KASTURI SETHI - The Reply = It is just like coupons. You may say sale-promotion of non-GST goods. Now how these coupons are redeemed by the buyer that matters i.e. determinant factor. Pl. elaborate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... your query for a comprehensive reply. - Reply By SUBRATA RAY - The Reply = Loyalty points redeemed against purchase of NON GST supply I.e purchase of diesel - Reply By KASTURI SETHI - The Reply = If loyalty points are redeemed within specified period, these are actionable claims and hence neither goods nor services are as per Schedule-III of CGST Act . However, if redeemed after expiry of the spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified period i.e. validity period is over, it will not fall under the definition and scope of actionable claim. Then these will be classified under 'tolerating an act ' and will be taxable. Pl. go through the following decisions of AAR Haryana and AAAR Haryana (i) 2018 (7) TMI 1421 - AUTHORITY FOR ADVANCE RULING - HARYANA - IN RE : LOYALTY SOLUTIONS AND RESEARCH PRIVATE LIMITED (ii) 2019 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2) TMI 1004 - APPELLATE AUTHORITY FOR ADVANCE RULING, HARYANA - IN RE : LOYALTY SOLUTIONS AND RESEARCH PVT. LTD. - Reply By Shilpi Jain - The Reply = These loyalty points can be looked like one type of discount only. It should not entail any liabilities. Though it also depends on how this scheme is worded and given effect to. - Reply By Ganeshan Kalyani - The Reply = I agree with the views of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expert. It is a kind of discount we can say, which is to be adjusted against future supply. The only thing here is that there is no credit note but only a loyalty point. Loyalty point is a kind of coupon. Bank also give points on usage of credit card. The points can be converted into a coupon and the same can be used for purchase of things (any item, say cloth, groceries etc). The time of supply f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or coupon is - when supplier is determined then that point is the taxable event and when supplier is not identified then time of supply would be the time of redemption of such coupon. Here in this case the supplier is same (ie known at the time of supply) so GST would be applicable at the time of giving loyalty point. - GST liability on Loyalty earned against purchase of fuel - Query Started By: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - SUBRATA RAY Dated:- 11-4-2024 Last Replied Date:- 30-5-2024 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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