Levy of GST— Section 7 of CGST Act—In the instant case, appellant is a Private Limited Company involved in the business of providing marketing services in the area of sourcing and supply of E-Vouchers. The clients issue work orders to the Appellant from time to time for supply of vouchers having a pre-defined face value. The client issues such vouchers to their customers who in turn can redeem the vouchers at any of the specified merchants who have agreed to accept the vouchers as consideration for goods or services supplied by them. 

The issue to be determined by this authority is whether the vouchers traded by the Appellant is a supply of “goods” and if so, whether they qualify as “actionable claim”. The answer to the above will determine the taxability of the vouchers at the hands of the Appellant and also the rate of tax.

The lower Authority has also held that the vouchers are not ‘actionable claims’ in as much as they are not debt and have an expiry period. The Appellant has assailed this finding on the grounds that the voucher by definition is a consideration for the purchase of goods or services and hence consideration itself cannot be held as “goods”.

Held that— the vouchers traded by the Appellant are goods and not actionable claims, we hold that the supply of vouchers by the Appellant is a supply of goods in terms of Section 7 of the CGST Act. We are in complete agreement with the ruling given by the lower Authority on the aspect of value of the vouchers for the purpose of GST, the rate of tax and the time of supply of the vouchers by the Appellant. Since the Appellant is not the issuer of the voucher, the provisions of time of supply under Section 12(4) will not apply and the time of supply will be governed by the provisions of Section 12(5) of the CGST Act.