New GST Circulars 242 & 243 31.12.2024 | No GST on vouchers | POS - Online services | S 12 of IGST

IGST & Place of Supply:

IGST Act belongs to the Central Government.

The Central Government has power to determine Place of Supply, not the State. States need special authorization.

GST aims for consumption-based taxation; the destination state gets the revenue.

Section 10 of IGST Act determines place of supply for goods (location where movement terminates). Address should be recorded

Online Services & Unregistered Recipients:

Circular 242 clarifies rules for online services to unregistered recipients.

Rule 46 mandates address collection for online services (gaming, OIDAR, etc.).

If address not provided, it creates issues for Place of Supply determination.

Rule not applicable in case of supply of goods

Vouchers & GST:

GST Council Press Release: Vouchers no longer taxable from July 1, 2017 (retroactive).

Vouchers are a transaction in money. It's recognized by RBI as PPI or they're an actionable claim (Schedule III).

Principal-to-principal voucher sales have no GST. Commission to agents is taxable.

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