Delhi GST Department Issues Clarification on Issues Related to GST Treatment of Vouchers

The Central Board of Indirect Taxes and Customs (CBIC) has issued a circular where it has given clarification regarding the issues related to the GST Treatment of Vouchers. The Issues were as follows:

“Issue 1-Whether “transactions in vouchers” fall under the category of supply of goods and/or services?

Issue 2-What would be the GST treatment of transactions in vouchers by distributors/sub-distributors/ agents etc.?

Issue 3-What would be GST treatment of additional services such as advertisement, co-branding, marketing & promotion, customization services, technology support services, customer support services etc.

Issue 4-What would be the GST treatment of unredeemed vouchers (breakage)?”

The CBIC has decided that the Circular No. 243/37/2024 GST, dated 31st December 2024, is applicable in this regard. The circular explains the treatment of transactions in vouchers and treatment of other extra services such as advertisement, co-branding, marketing & promotion, customisation services, technology support services, customer support services, etc. Additionally, it also provides clarification on the GST treatment of unredeemed vouchers (breakage).

Refer to the official circular for more information.