GST liability on Loyalty earned against purchase of fuel

[SUBRATA RAY]

A GTA receives loyalty point in monetary value against purchase of diesel for its vehicles. whether loyalty points earned in monetary value is liable for GST even though Diesel is still outside the purview of GST.

AI Summary

Debate on GST Applicability: Are Loyalty Points Earned from Diesel Purchases Taxable Under CGST Act? A discussion on a forum addresses whether GST applies to loyalty points earned from purchasing diesel, which is outside GST's scope. Participants inquire about the payer and use of these points, comparing them to coupons or discounts. One view suggests that if loyalty points are redeemed within a specified period, they are not taxable under the CGST Act. However, if redeemed after expiration, they might be taxable as 'tolerating an act.' Others argue that loyalty points are akin to discounts, impacting GST applicability based on redemption timing and supplier identification.