Vouchers not goods or services, exempted from GST, says Karnataka high court

GST

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Feb 15, 2023

Vouchers are exempted from GST, the Karnataka high court ruled in a recent judgment, asserting that these don't carry any value and they're not goods or services either.
"The definition of 'vouchers' under the CGST Act makes it clear that vouchers are mere instrumentsaccepted as consideration for supply of goods or services. They have no inherent value of their own," a division bench headed by Justice PS Dinesh Kumar said.
"As vouchers are considered 'instruments', they would fall under the definition of 'money'..." as defined by the law, which also "excludes 'money' from the definition of goods and service" and therefore no tax can be levied on it, the HC said.

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