2026-VIL-80-AAR
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SGST Advance Ruling Authority

GST – Karnataka AAR – Taxability of Rebates received from bank for usage of Corporate Card - Applicant, a liquor manufacturer, has obtained a Corporate Card from HSBC Bank to make payments towards excise duty. Based on the total excise duty payments made during a month, HSBC Bank grants a rebate at a specified percentage, which is adjusted against the outstanding card balance - Whether the rebate received for payment of excise duty through the Corporate Card is liable to GST – HELD - The rebates received by the applicant from bank are merely transaction in money and do not involve any supply of goods or services. The rebate is granted by the bank as a post-transaction financial adjustment linked to the usage of the corporate card and is not attributable to any independent or identifiable supply of goods or services by the applicant to the bank - The rebate merely results in a reduction of the outstanding monetary liability payable to the bank and falls within the definition of "money" under Section 2(75) of the CGST Act, 2017. The rebate does not represent consideration for any taxable service and hence cannot be brought to tax under GST - Further, the transaction is covered under the exemption provided for services by way of extending deposits, loans, or advances where the consideration is represented by way of interest or discount. Therefore, the rebates received by the applicant does not fall within the ambit of Section 7 of the CGST Act, 2017 and is not liable to GST - Ordered accordingly
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