Uttar Pradesh’s Authority for Advance Ruling (UPAAR) has ruled pre-paid vouchers are taxable at 18%.
UPAAR has ruled prepaid vouchers constitute supply of goods.
UPAAR has ruled that pre-paid vouchers are treated at par with Sodexo vouchers or gift vouchers issued by Kalyan Jewellers.
Accordingly, they will attract GST at the rate of 18%.
Supply of vouchers by the applicant is taxable at 9% CGST and 9% UPGST.
UPAAR said that the supply of vouchers by the applicant are taxable as a supply of goods.
The applicant was Noida-based Payline Technologies. It was involved in the business of selling and purchasing gift cards, vouchers or pre-paid vouchers.
Pre-paid vouchers ae vouchers against which goods or services can be purchased from specific brands on e-commerce platforms like Amazon, Flipkart, etc.
The applicant purchases the vouchers against the advance payments at discounted prices.
They are then supplied to clients. The clients can hand over them to anyone.
