Gift to employees

[Ashiesh Prremji]

Dear Experts,

Please Clarify whether as per Schedule I gift in kind amount of 50,000/- by an employer to his employee is for per employee or all employees per Financial Year ?

[KASTURI SETHI]

It is per employee. the language is 'by an employer to an employee"

"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.

[Ashiesh Prremji]

Yes Sir....Thanks for Clarification.

AI Summary

Employee gift exemption: gifts by an employer to each employee in a financial year are not treated as supply.
The provision excludes from supply gifts not exceeding the prescribed value in a financial year by an employer to an employee; the wording indicates the exemption applies to gifts made by an employer to an individual employee, so each qualifying gift to an employee is treated as not being a supply for GST purposes.