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.
Confusion over when to levy GST on gift vouchers and gift cards finally gets cleared
SECTIONS
Share
Synopsis
Levying Goods and Services Tax (GST) on gift vouchers and gift cards has been a complicated matter that may just have been eased out following a recent order by Appellate Authority for Advance Ruling (AAAR).
Agencies
Can a gift voucher be taxed differently than a gift card, especially if one is made of paper and another of plastic or metal? And what should be taxed the card, the voucher, the points therein, or the goods purchased?
In what could give clarity to taxing gift cards and vouchers such as the ones by