Gift is not a subject to GST

The finance ministry on Monday processed that there’ll be no merchandise and services tax (GST) for gifts price Rs 50,000 per year from a leader to their workers.

However, gifts useful over Rs 50,000 created inconsiderately are subject to GST, once created within the course or furtherance of business, consistent with a political candidate statement from the ministry.

The gift has not been outlined within the GST law. In common expression, a present is created inconsiderately, is voluntary in nature and is created sometimes. It can’t be demanded as a matter of right by worker and therefore the employee cannot move a court of law for getting a present.

The services by a worker to the leader within the course of or in relevance his employment are outside the scope of GST. Further, the input reduction (ITC) theme below GST doesn’t enable ITC of membership of a club, health and fitness center. If such services are provided free of charge to all or any the workers by the leader, then identical won’t be subjected to GST, provided applicable GST was paid once procured by the leader.

The same would hold true for free of charge housing to the workers, once identical is provided in terms of the contract between the leader and worker and is an element and parcel of the cost-to-company (C2C), the statement adscititious.

In another event, government minister Arun Jaitley launched a replacement tax money dealer service module ‘Aaykar Setu’.

This e-initiative would facilitate in reducing physical interface between assesses and tax assessing authorities and minimize possibilities of any tax harassment, he said.

The new step is a shot by the taxation department (ITD) to directly communicate with the taxpayers, on a spread of multiple informative and helpful tax services geared toward providing tax info at their fingertips.

The module compiles varied tax tools, live chat facility, dynamic updates, and necessary links to varied processes among the ITD. The tax payers also will be ready to receive regular updates relating to necessary tax dates, forms, and notifications on mobile numbers registered with the ITD.

All taxpayers who would like to receive such SMS alerts are suggested to register their mobile numbers within the Aaykar Setu module.

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