The Madras High Court has provided clarity on the levy of GST against gift vouchers.
In the case of Kalyan Jewellers, it modified a ruling given by the Appellate Authority for Advance Rulings (AAAR), which had been sought earlier by this entity. The high court clarified that a ‘gift voucher’ is an ‘actionable claim’ (enforceable debt), not constituting a supply of goods or services under Schedule III.
In the case settled by the high court, Kalyan Jewellers, which was engaged in the manufacture and sale of ornaments through its retail outlets across India, had introduced a scheme of issuing different types of gift cards. These gift cards were sold in its retail outlets and on various online portals.
Source: www.a2ztaxcorp.com
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