TaxTMI 
TaxTMI 
TaxTMI 
Does Incentives and Bonuses attract GST to employee by an employer ?
Does Incentives and Bonuses attract GST to employee by the employer?
RameshBabu Kari
Incentives and bonuses to employees are not subject to GST under CGST Act 2017, say participants. A discussion on whether incentives and bonuses given by an employer to an employee attract GST concluded with consensus among participants that they do not. According to the responses, incentives and bonuses are considered part of the services rendered by an employee during employment and are not classified as a supply of service under the CGST Act 2017. Consequently, GST is not applicable to these payments. (AI Summary)