Is gift is taxable

Hai R.V. Badgali, 

For any transaction to be taxed under GST we should check whether

1.It falls under the definition of supply or not 

2. whether any consideration is involved in it (Allowing an exemption for Schedule I list).

3. In the course or furtherance of business.

Supply: All forms of supply of goods or services or both, such as sale, transfer, barter, exchange, license, rental, lease, or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business. From the above provision, one can conclude that to constitute a “supply” the following elements are required to be satisfied:-

• It should be made in the course or furtherance of business
• There should be some consideration involved

In the given case it is not treated as supply as it is without consideration and also not in the course or furtherance of business. So, I think GST should not be charged on the iPhone as it is not a supply.

NOTE: If he falls under the definition of the related party then it will be taxable if made in the course or furtherance of business.

As per section 2(49) family means:

(i) the spouse and children of the person, and

(ii) the parents, grandparents, brothers, and sisters of the person if they are wholly or mainly dependent on the said person;

It is outside the purview of Schedule I as well if ITC has not been availed on it. assuming that person gifting the phone is an unregistered person.