Gifts to employees

[SHYAM PATHAK]

Dear Sir,

May we claim GST ITC on gifts given to employees of above ₹ 50000 or below 50000.

Pls clarify.

AI Summary

Can GST Input Tax Credit be claimed on employee gifts? Freely given gifts ineligible; performance-related items may qualify. A discussion on whether Goods and Services Tax (GST) Input Tax Credit (ITC) can be claimed on gifts given to employees. The consensus among participants is that gifts given freely are not eligible for ITC. However, if the items are provided as part of an obligation or as recognition for performance or achievements, they are not considered gifts and may be eligible for ITC. Participants emphasize examining the nature of the transaction to determine eligibility for credit.