Employee Birthday & Recognition

Under Indian GST rules, gifts to employees up to a combined value of ₹50,000 in a financial year are generally not treated as a taxable supply, though input tax credit on goods purchased specifically for employee gifting is typically restricted under Section 17(5) of the CGST Act. Birthday gifts would generally be counted within this same annual threshold alongside other employee gifting throughout the year, so companies running frequent recognition or birthday gifting programs should track cumulative gift value per employee to stay within applicable limits. Because exact tax treatment can depend on gift value, structure, and how the expense is recorded, it's worth confirming current rules with a tax professional or chartered accountant rather than relying solely on general guidance.