Some vouchers have GST levied on them at the time of purchase, which leads to double taxation when they are used to buy goods or services that also include the tax. The proposed clarification is expected to clear the air on the taxability of vouchers and gift cards, suggesting they should not be taxed at the point of sale.
Tax experts said this would lead to an increase in litigation over the next three months while hitting cash flows of companies as they would be required to furnish 10% of the total liability as a deposit for filing an appeal.
India Business News: MUMBAI: It is not just customers who look forward to the festive season in hopes of discounts and freebies - dealers, too, get target-based incentives.
India Business News: MUMBAI: Several companies that have successfully bid and taken over operations of a defaulting company under the Insolvency and Bankruptcy Code (IBC) .