Since the introduction of GST, the taxability of vouchers has been a bone of contention. Various advance rulings have adopted contradicting tax positions concerning the taxability of vouchers. This article discusses the taxability of vouchers and gift cards under the GST law.
It is expected that the government may soon come up with a detailed clarification regarding the taxability of vouchers, especially single-purpose vouchers, and confirm that the vouchers are not the subject matter of independent GST levy. Alternatively, the GST Council may recommend deleting Section 12(4) of the CGST Act. This will clear the air around ongoing litigations and end this double whammy concerning its taxability.
