Itc on Diwali gift given to employees

This discussion clarifies the rules around claiming Input Tax Credit (ITC) on Diwali gifts provided to employees. Generally, ITC is not allowed on gifts given to employees, especially when the annual value per employee is below £50,000, as these are not considered 'supplies' under the CGST Act. However, if the value of gifts exceeds £50,000 per employee annually, it is treated as a 'supply', and ITC may be claimable. For gifts below this threshold, any ITC previously claimed on the merchandise must be reversed.