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GST on cash back received for redemption of credit card points

Yogesh Gupta (143 Points)

01 December 2023

Does GST applicable on cash back received on credit card redemption points?

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Money Money (413 Points)
Replied 01 December 2023

GST is applicable on cash back received on credit card redemption points in India12. The cash back amount is considered as a discount or a benefit given by the credit card issuer, and hence it is subject to GST at 18%1. However, this does not apply to the loyalty or other points programs that are collected by the employees when travelling on employer-reimbursed business trips or incurring other business-related expenses in Canada3. In that case, the redemption of points is generally a taxable benefit for the employee