What Is Corporate Gifting

Under Indian GST rules, gifts given to employees up to a value of ₹50,000 in a financial year are generally not taxed as a supply, though input tax credit on goods purchased specifically for gifting is typically restricted under Section 17(5) of the CGST Act, with some exceptions for items used in furtherance of business like promotional merchandise. Gifts to clients or business partners may have different tax treatment depending on whether they're classified as a business expense or a promotional cost. Because GST and tax treatment can vary based on gift value, recipient type, and how the expense is recorded, it's worth confirming current applicable rules with a tax professional or chartered accountant before finalising large corporate gifting budgets.