If an employer gives its employees (employees) a gift above Rs 50,000 in a year outside the contractual agreement and without thinking, it will be within the purview of Goods and Services Tax (GST). The Finance Ministry has said this on Monday.
GST will not look at gifts less than Rs. 50,000
In a statement, the Finance Ministry said, “Gifts and additional facilities given to the employees on behalf of the companies will come under GST. Given the value of Rs 50,000 each year from an employer, the Gift will be outside the purview of GST. However, GST with a value greater than Rs. 50,000 will be charged.
No additional GST on additional facilities under contractual agreement
However, the Gift is not defined in GST Law. The Government has made it clear that the employers will not be able to get Goods and Services Tax on the additional facilities given under the terms of contractual agreement from the employer. The Government has taken this step by keeping in mind the expensive and expensive gift given to the employees in the corporate.
