TaxTMI 
TaxTMI 
Dear Sir,
May we claim GST ITC on gifts given to employees of above ₹ 50000 or below 50000.
Pls clarify.
Gifts to employees
31 Oct 2021 
4 Replies 
3031 Views Asked by
Input tax credit on gifts to employees is disallowed unless the provision is an employer obligation or performance-related reward.
Goods given as gratuitous gifts to employees do not qualify for input tax credit; however, where the provision is an employer obligation or a reward tied to employee performance and thus not a gift, the transfer may be eligible for input tax credit, requiring factual and legal characterisation of the supply. (AI Summary)
Goods given as gratuitous gifts to employees do not qualify for input tax credit; however, where the provision is an employer obligation or a reward tied to employee performance and thus not a gift, the transfer may be eligible for input tax credit, requiring factual and legal characterisation of the supply. (AI Summary)