Gifts to Employees under GST
It is a common business practice to give gifts to employees, especially on the occasion of festivals like Diwali, New Year, etc. In addition, companies provide various perquisites to employees, such as housing, laptops, conveyance, health insurance, etc. In the previous indirect tax regime, these gifts were not taxable under VAT or Service Tax. Let us understand the treatment of gifts to employees under GST. What are gifts? Gifts have not been defined in the GST Law. However, the Finance Ministry has issued a notification which states that a gift is given without any consideration in return, is voluntary and is made occasionally. It cannot be demanded as a matter of right and an employee cannot move a court of […]