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Gst on emplyoee gift by emploer value exceeding 50000/- in F. Y

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Rajkumar Gutti

773 Points Posted on 25 April 2022

we are given gold coin to our 15 No. employees each worth Rs. 60000/-
as Gift. In F.Y.22-23

Can this is a treated a supply.

can we payable Gst, on which value
which rate.

can we avail Gst input on purchases
of Gold coin.

please Guide us

Replies (6)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications when an employer provides gifts to employees, specifically gold coins worth over £50,000 each in FY 2022-23. Such gifts are considered a taxable supply under the GST Act, requiring the employer to pay GST on the market value of the gold coins. Importantly, employers are eligible to claim input tax credit on the purchase of these gold coins, even though the initial supply is a gift.

Rajendra Prasad

Employee Private

1142 Points Posted on 25 April 2022

Yes, the said gifts shall be treated as supply as per Schedule 1 of GST Act and has to pay GST at applicable rate on Gold Coins on the market value also. You are eligible to avail input credit on inward supply.

Rajkumar Gutti

773 Points Posted on 26 April 2022

If we don't take gold coin purchases input credit.
Then can we treated as supply & pay GST.
please Guide us

Rajendra Prasad

Employee Private

1142 Points Posted on 26 April 2022

Taking input is not criteria for liability. The said transaction will be treated as Supply. Hence you have to pay GST on it.

Pankaj Rawat

GST Practitioner

29904 Points Posted on 27 April 2022

Dear Raj Kumar

As per Schedule 1 it's taxable supply & As per Section 17(5) ITC is not available.

Even though its value exceeds 50k & cover under the taxable supply but its nature of supply is Gift & section 17(5) block credit by way of giving gift.