GST is not leviable on vouchers being in the nature of instruments: Karnataka HC
- Blog|News|GST & Customs|
- < 1 minute
- By Taxmann
- |
- Last Updated on 7 February, 2023
Latest from Taxmann
Case Details: Premier Sales Promotion (P.) Ltd. v. Union of India - [2023] 147 taxmann.com 85 (Karnataka)
Judiciary and Counsel Details
-
- P.S. Dinesh Kumar & T.G. Shivashankare Gowda, JJ.
- G. Shivadass and M.S. Nagaraja, Advs. for the Petitioner.
- Jeevan J. Neeralgi for the Respondent.
Facts of the Case
The assessee was engaged in the transactions of procuring Pre-paid Payment Instruments of Gift Vouchers, Cash Back Vouchers and E-Vouchers from the issuers and supplying them to its clients for specified face value. It filed application for advance ruling to determine taxability of vouchers. The Authority for Advance Ruling (AAR) held that supply of vouchers would be taxable as goods. The Appellate Authority affirmed the order passed by the AAR and it filed writ petition against the same.
High Court Held
The Honorable High Court noted that vouchers are mere instruments accepted as consideration for supply of goods or services and do not have any inherent value of their own. Since vouchers qualify as instruments, they would be covered under definition of ‘money’ and money is excluded from definition of goods and service. Therefore, the tax would not be payable on vouchers as transaction shall be restricted to procurement of printed form and delivering the same to clients.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
