Ministry of Finance says gifts of over Rs 50,000 subject to GST

The Ministry of Finance has said that the gifts and perquisites supplied by companies to their employees will be taxed under GST. Gifts valuing more than Rs 50,000 made without consideration are subject to GST, when made in the course or furtherance of business. 
 
However, gifts up to a value of Rs 50,000 per year by an employer to his employee are outside the ambit of GST.

A Finance Ministry releasesaid, “The question arises as to what constitutes a gift. Gift has not been defined in the GST law. In common parlance, gift is made without consideration, is voluntary in nature and is made occasionally. It cannot be demanded as a matter of right by the employee and the employee cannot move a court of law for obtaining a gift.” .
 
Another issue is the taxation of perquisites. It is pertinent to point out here that the services by an employee to the employer in the course of or in relation to his employment is outside the scope of GST (neither supply of goods or supply of services), it added.