Legal Summary: The AP State Tax Authority issued a comprehensive ...

Landmark GST Voucher Ruling: Clarifies Tax Treatment, Distribution Models, and Unredeemed Instrument Taxation Principles

April 14, 2025

Circulars GST - States

Legal Summary: The AP State Tax Authority issued a comprehensive clarification on GST treatment of vouchers, addressing four key issues. The ruling determines that voucher transactions are neither a supply of goods nor services, whether the vouchers are RBI-recognized pre-paid instruments or actionable claims. Transactions involving voucher distribution through principal-to-principal models do not attract GST, while agency-based distributions may incur GST on commissions. Additional services related to voucher distribution remain taxable. Critically, unredeemed vouchers (breakage) are not considered taxable, as they do not constitute a supply of goods or services when no redemption occurs. The guidance aims to provide uniformity in GST implementation across field formations.

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Legal Summary: The AP State Tax Authority issued a comprehensive ...

Landmark GST Voucher Ruling: Clarifies Tax Treatment, Distribution Models, and Unredeemed Instrument Taxation Principles

April 14, 2025

Circulars GST - States

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