Reward for festival
This query is : Resolved
Rajkumar Gutti
(Querist)
02 November 2026
As a Diwali festival employer gift,/ reward Rs. 75000/- cash / bank transfer to each employee ( Not statutory Bonus )
Can this gift is supply & attract GST
Can this gift is supply & attract GST
03 November 2026
Is it a supply? No.
Does it attract GST? No. A direct cash or bank transfer (money) from an employer to an employee does not fall within the definition of "goods" or "services" under GST law. Therefore, GST is not applicable to a monetary festival gift of ₹75,000.
Note on Income Tax: While exempt from GST, please note that such lump-sum cash gifts may have income tax implications under the Income Tax Act (taxable in the hands of the employee as perquisites or income from other sources depending on employment terms).
Does it attract GST? No. A direct cash or bank transfer (money) from an employer to an employee does not fall within the definition of "goods" or "services" under GST law. Therefore, GST is not applicable to a monetary festival gift of ₹75,000.
Note on Income Tax: While exempt from GST, please note that such lump-sum cash gifts may have income tax implications under the Income Tax Act (taxable in the hands of the employee as perquisites or income from other sources depending on employment terms).
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