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.