TaxTMI 
TaxTMI 
does gift given by a client is it part of Turnover and does it attract GST.
pl explain gst treatment and income tax treatment for the same
Gift given by client - tax treatment
04 Jan 2026 
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Gift from client may be excluded from GST unless linked to supply; income tax usually treats it as business income.
Voluntary gifts from clients not linked to any supply are generally excluded from GST turnover, but where a gift is consideration in disguise or given in the course of business and exceeds the low value threshold it is treated as taxable turnover and taxed by applicable HSN. Input tax credit is not available for goods disposed of as gifts or free samples and must be reversed. For income tax, receipts from clients that arise from the professional relationship are generally taxable as business or professional income. (AI Summary)
Voluntary gifts from clients not linked to any supply are generally excluded from GST turnover, but where a gift is consideration in disguise or given in the course of business and exceeds the low value threshold it is treated as taxable turnover and taxed by applicable HSN. Input tax credit is not available for goods disposed of as gifts or free samples and must be reversed. For income tax, receipts from clients that arise from the professional relationship are generally taxable as business or professional income. (AI Summary)