Some Vouchers are Actionable Claims, No GST Applicable on All Vouchers per se: FM after GST Council Meet

The Finance Minister, while addressing the nation through the press conference, made it clear that some vouchers are actionable claims and no GST is applicable to all vouchers per se. The Finance Minister clarified that not all vouchers are actionable claims, but some vouchers may fall under this category depending on their nature and usage.

The speculations were true, and the FM has confirmed the removal of GST from gift vouchers issued by businesses involved in the retail sector.

The 55th meeting of the GST Council was presided over by Union Finance Minister Nirmala Sitharaman today, December 21, in Jaisalmer, Rajasthan.

In the retail sector, gift vouchers are prepaid cards or certificates that businesses issue and that consumers can use to buy products or services up to a certain amount within a given time frame. Gift cards are frequently used by retailers as promotional tools to increase sales, maintain client loyalty, or thank current clients. Gift vouchers, whether digital or real, are frequently used in retail industries and are becoming more and more popular during holidays and marketing campaigns. However, there has been controversy over their GST taxation, with different regulations based on whether they are considered instruments, products, or services.

Read More: https://www.taxscan.in/gst-exemption-on-gift-vouchers-55th-gst-council-meeting-to-consider-benefits-for-retail-sector/469784/

Other important decisions include that the lifesaving drugs will be fully exempt from GST and that the fresh green and black peppers, when supplied by the agriculturists, will be exempt from GST. Another significant update includes  FM, who, while addressing the press, has informed that the International Atomic Energy (  IAEA ) samples will be exempt from Integrated Goods and Service Tax.

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It should be mentioned that the nation was kept waiting for the meeting because it was delayed by almost forty minutes.

The Finance Minister underlined that not all vouchers are subject to GST. The particulars of the voucher and how it is applied during a transaction determine its applicability.

The government's goal to improve the GST system and fortify its international commitments is portrayed during the 55th GST Council meeting.

ADG PIB spoke at the news conference.

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