Case Law Details
In re M/s Loyalty Solutions and Research Pvt. Ltd. (LSRPLI) (GST AAAR Haryana)
The value of points forfeited of the applicant on which money had been paid by the issue of points on account of failure of the end customers to redeem the payback points within their validity period would amount to consideration received in lieu of services being provided by LSRPL to its clients and thus would be outside the scope of being considered as ‘actionable claim’ other than lottery, gambling or betting and therefore would qualify as supply of services in terms of Section 7 of the Central Goods and Services Act, 2017/ Haryana Goods and Services Act, 2017 and therefore would be within the scope of levy of GST
II. The value of points forfeited of the applicant on which money has been paid by the issue of points on account of failure of the end customers to redeem the payback points within their validity period is to be treated as “supply” of services and consequently be chargeable to GST under the CGST, HGST or IGST Act, as the case may be.
Also Read AAR Ruling- Forfeited Issuance fee of Reward points is fee for supply of Services: AAR
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, HARYANA
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