Example 29

When Company issues vouchers (X) to their client A for Rs. 40000 and company has entered into contract with many establishments for redeeming such vouchers like Reliance Fresh, MacDonald  and also with Amazon etc. Client A redeems such voucher on Amazon for Rs .25000 for purchasing goods of worth Rs 25000. What will be the time of supply and value of supply of coupons /vouchers'

Ans.

According to section 12(4), where supply of goods is identifiable at the time of issue of vouchers, then date of issue of voucher is the time of supply and where supply is not identifiable, time of supply would be the time of redemption of voucher. In the above example supply is not identifiable at the time of issue of voucher, therefore, the time when the client redeems the issued voucher on Amazon would be the time of supply of voucher. Rule 32 (Chapter - IV of CGST Rules, 2017) of determination of value of supply specifies that the value of a token, or a voucher, or a coupon, or a stamp (other than postage stamp) which is redeemable against a supply of goods or services or both shall be equal to the money value of the goods or services or both redeemable against such token, voucher, coupon, or stamp.

Thus, in the above example, value of voucher (x) is the money value of goods which is purchased from Amazon i.e. for Rs. 25000.