Tax Street – January 2024

Focus Point

Clearing the air on levy of GST on 'Gift Vouchers'

Vouchers have been a popular mode of gifting in this era, considering the ease of their purchase and redemption. In general parlance, a voucher means a denominated document that can be used to purchase either a defined product(s)/service(s) or any products/ services for a prescribed amount. While gifting has been made easy by introducing vouchers, their taxability under the GST law has been a bit confusing - whether GST should be levied on the purchase of vouchers per se or redemption thereof. Whether these vouchers can be treated as 'goods' or 'services' or 'actionable claims'? Can vouchers be treated as equivalent to money?