Law Legends


Gifts by employer to employee

In the GST law, there's no specific definition for the word "gift. In common parlance, gift is made without consideration, is voluntary in nature and is made occasionally. A gift is something you give to someone without expecting anything in return and it usually happens on special occasions It can not be demanded as a matter of right by the employee.

It is being reported that gifts and perquisites supplied by companies to their employees will be taxed in GST. Gifts upto a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of GST. However, gifts of value more than Rs 50,000/- made without consideration are subject to GST, when made in the course or furtherance of business.

Particulars  GST Applicability
Gift upto Rs. 50,000/- per year Not Applicable
Gift more than Rs. 50,000/- per year Applicable
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