What is Time of supply of vouchers exchangeable for goods ?

What is Time of supply of vouchers exchangeable for goods ?

As per section 12(4), the time of supply of vouchers exchangeable for goods is-

Date of issue of the voucher, if the supply that it covers is identifiable at that point, or

Date of redemption of the voucher in other cases.

Note: “Vouchers” are instruments that can be exchanged as payment for goods or services of the designated value. As per the definition, they are instruments, that certain persons (potential suppliers) are obliged to accept as consideration, part or full, for goods and/or services.

Example

Stark Limited sells food coupons to a company. The company gives these coupons to its employees as part of the agreed perquisites. The coupons can be redeemed for purchase of any item of food /provisions in the outlets that are part of the program. As the supply against which the coupon will be redeemed is not known on the date of the sale of the coupon, the time of supply of the coupon will be the date on which the employee redeems it against food / provision items of his choice.