Budget Impact From GST Perspective

Goods and Services Tax (GST) is crucial for revenue collection, compliance, and economic growth.

- Sanjay M Dhariwal Chartered Accountant

The Finance Bill (FB) 2025 introduces policy changes and simplifications to enhance efficiency. This article examines the proposed amendments and their impact.

Vouchers Not Considered as Supply of Goods or Services: Vouchers can either be Prepaid Payment Instruments (PPI) or non-PPI. Prepaid vouchers are treated as equivalent to money and are excluded from the definition of goods and services. Non-PPI vouchers fall under actionable claims and are not subject to GST, as upheld by the Hon'ble Madras HC in Kalyan Jewellers. Additionally, the Hon'ble Karnataka HC in Premier Sales Promotion Pvt. Ltd. ruled that vouchers have no intrinsic value. The FB simplifies compliance by deleting time of supply rules for gift vouchers/gift cards issued for promotional purposes, though the goods or services redeemed through them remain taxable under GST.