• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

No GST on gifts up to value of Rs 50,000 from employer: Finance Ministry

|

The Ministry of Finance on Monday said that gifts up to a value of Rs 50,000/- per year by an employer to his employee are outside the ambit of Goods and Services Tax.

No GST on Rs 50,000 worth gifts

The Ministry however, further said that gifts of value more than Rs 50,000/- made without consideration are subject to GST, when made in course or furtherance of business.

''Services by an employee to the employer in the course of or in relation to his employment is outside the scope of GST,''Finance Ministry said in a tweet..

''Supply by an employer to an employee in terms of contractual agreement entered into between employer & employee,will not be subjected to GST,'' the ministry added.

Further, the ministry said that the Input Tax Credit Scheme under GST does not allow ITC of membership of a club, health and fitness centre. It follows that if such services are provided free of charge to all the employees by the employer then the same will not be subjected to GST. These services will not be subjected to GST provided appropriate GST was paid when procured by the employer.

''Same would hold true for free housing to employees,when same is provided in contract between employer & employee& is part of Cost to Compan,'' it added.

OneIndia News

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more