A voucher is an instrument, such as a gift card or prepaid coupon, that must be accepted as payment for goods or services. From 1 October 2025, the special time of supply rules for vouchers were removed, and the Government has clarified that voucher transactions themselves are not a supply of goods or services.
Section 2(118) of the CGST Act defines voucher as an instrument where there is an obligation to accept it as consideration or part consideration for a supply of goods or services, and where the goods or services to be supplied, or the identities of potential suppliers, are indicated on the instrument or in related documentation, including its terms of use.
Earlier, Sections 12(4) and 13(4) set a special time of supply for vouchers. The Finance Act 2025 omitted them, with effect from 1 October 2025. This follows the Government's clarification that vouchers are payment instruments, so buying, selling or distributing a voucher is not in itself a supply.
Tax arises on the actual goods or services when the voucher is redeemed, under the normal rules for time and value of supply.
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This guide explains the law in general terms as of October 2026. Time limits and requirements can depend on the facts of your case and on the notice you received.
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