The Government of Assam on January 17, 2025, issued Clarification on various issues pertaining to GST treatment of vouchers.
The GST implications on vouchers have raised ambiguities and inconsistencies, prompting the Board to issue the following clarifications for uniform implementation across field formations:
Nature of Vouchers as Supply of Goods or Services, Vouchers, as per section 2(118) of the AssamGST Act, create an obligation on suppliers to accept them as consideration. When vouchers are classified as pre-paid instruments recognized by the RBI, they fall under the definition of "money" and are excluded from the scope of goods or services under GST. Non-RBI-recognized vouchers, being actionable claims, are treated under entry 6 of Schedule III, making them neither goods nor services. Hence, transactions in vouchers themselves are not taxable under GST, though the underlying goods/services for which vouchers are redeemed may be taxable.
GST on Distribution of Vouchers are, Principal-to-Principal Basis, Vouchers distributed by dealers on a P2P basis involve trading margins and are not considered as a supply of goods or services. Thus, such transactions are not subject to GST.
Commission/Agency Basis, When distributors or agents facilitate voucher distribution for a commission or fee, the commission received is considered a taxable supply of services and subject to GST.
Additional Services Provided to Voucher Issuers, Services like advertisement, co-branding, marketing, or technical support rendered to voucher issuers are subject to GST on the fees charged for such services.
GST on Unredeemed Vouchers (Breakage), Amounts attributed to unredeemed vouchers (breakage) do not involve the supply of goods or services. As there is no consideration linked to any supply, such amounts are not taxable under GST provisions.
Field formations and stakeholders are advised to publicize and comply with these clarifications to ensure consistency in practice.
[Notification No.186/2025 GST]
