The Tax Publishers

GST--Taxability of Vouchers

Vouchers are not Money Hence Chargeable to GST

CA. Satyadev Purohit

The learned author seeks to analyse a recent ruling of Appellate Authority for Advance Ruling, Karnataka in the case of Premier Sale Promotion (P.) Ltd., In re decided on 22-12-2021 : 2022 TaxPub(GST) 0055 (AAAR-Karn) on the issue as to whether vouchers are regarded money and trading in vouchers is chargeable to goods and services tax.

1. Money is regarded as neither goods nor services

As per charging section 9 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act, 2017"), central tax is leviable on all intra-State supplies of goods or services or both, except the supply of alcoholic liquor for human consumption, on the value determined under section 15.

As per the above provisions, the taxable event under the GST law is supply of goods or services.

The term "goods" is defined under clause (52) of section 2 of the CGST Act to mean every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

The term 'movable property' is not defined under the GST law. However, the meaning of the same is contained in clause (36) of section 3 of the General Clauses Act, 1977 as under:

'Movable property' shall mean property of every description, except immovable property;

The term 'immovable property' has also not been defined in the GST law but it is defined in section 3(26) of the General clause Act, 1897 as including land, benefits arising out of land, and things attached to the earth, or permanently fastened to anything attached to the earth.' It can be seen from the above, that any property other than immovable property is a movable property. The expression property is understood as things and rights which have a monetary value and being capable of transfer.

As per clause (102) of section 2 of the CGST Act, "services" means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or denomination for which a separate consideration is charged.

As per Explanation to sub-section (102) of section 2 of the CGST Act, the expression "services" includes facilitating or arranging transactions in securities.

As per the above definitions, the money is neither regarded as goods nor as services. Hence, dealing in money is not chargeable to tax.

SUBSCRIBE TaxPublishers.inSUBSCRIBE FOR FULL CONTENT

TaxPublishers.in

'Kedarnath', 7, Avadh Vihar, Near Nirali Dhani,

Chopasni Road

Jodhpur - 342 008 (Rajasthan) INDIA

Phones : 9785602619

E-Mail : mail@taxpublishers.in / mail.taxpublishers@gmail.com