ISSUE:
Whether the issuance of gift vouchers by Kalyan Jewellers constitutes a supply of goods or services under the GST Act?
If the issuance of gift vouchers is deemed taxable, determining when the tax liability arises—at the time of issuance or at the time of redemption?
Whether gift vouchers qualify as “actionable claims” under Section 2(1) of the GST Act, thereby exempting them from GST according to Schedule III?
RULE:
Vouchers, as payment instruments, are not taxable as goods or services unless linked to specific goods or services at issuance; otherwise, tax arises at redemption when the supply is identified.
Actionable claims, representing rights to future payment, are exempt from tax to avoid premature taxation, and PPIs are treated under financial standards, not as sales transactions, impacting their GST treatment.