GST on Gifts to employee

By | January 10, 2019
(Last Updated On: January 10, 2019)

GST on Gifts to employee

 I have provided a gift to the employee worth Rs 60000/-, for raising Tax Invoice what is Taxable Value?

1.Rs 10000/- i.e. (Rs 60000- Rs 50000(exempted value as per schedule I))

2.Rs 60000/-

My Opinion : Rs 10000 Should be Treated as Taxable Value for charging GST

SCHEDULE I of CGST Act 2017

[See section 7]

ACTIVITIES TO BE TREATED AS SUPPLY EVEN IF MADE WITHOUT CONSIDERATION

2. Supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business:

Provided that gifts not exceeding fifty thousand rupees in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both.

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