AAR rules 18% GST on e-voucher traders, on plea by marketing services firm

Rules that e-vouchers are not an actionable claim, and are not exempt from GST. They attract 18% GST as they come under the residual category

The Karnataka-based authority for advance rulings (AAR) has sorted out a tricky issue of levying goods and services tax (GST) on the supply of e-vouchers by sales promotion companies to other companies. It ruled that sales promotion companies that trade in vouchers will have to pay GST at the rate of 18 per cent and mention it on its monthly or quarterly sales returns.

The ruling was given on a petition by a company engaged in the business of providing marketing services. As part of the offered services, the applicant also supplies e-vouchers. It sources e-vouchers for other companies. The