Home Forum Goods and Services Tax - GST Month 7 2023 2023 (7) This
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GST Applicability - Gifts - Goods and Services Tax - GSTExtract GST ON GIFTS Gift to employees worth more than 50K is treated as supply and is subject to GST. Similarly under income tax law Gifts in kind in excess of ₹50K received from employer is treated as perquisites and taxed under the head salaries. Relevant issues :- Whether the company can take ITC incurred on purchase of such Gifts. Such Gifts are taxable under both IT rules and also under section 56(2) (X) of the Income tax . I presume section 17 will override section 56(2) (X) . What should be the accounting entries when tax invoice s raised for giving away Gift in kind in excess of 50K given to employees on special occasion like Diwali.
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