According to Schedule I of CGST Act, 2017 "Provided that gifts not exceeding RS 50000 in value in a financial year by an employer to an employee shall not be treated as supply of goods or services or both." Therefore if the value of the gift exceeds RS 50,000/- it is liable to gst. If gst payable then ITC can be availed by the employer. However if the gift is in the nature of incentive for doing exceptional job/work then it may be considered as compensation for doing good work and the same may be treated as payment made in the course of employment. However, this will lead to legal battles in the Court of Law.