GST on freebies keeps businesses guessing as rules blur what counts as business activity

Published on 24 April 2026

The GST line between “gift” and “business” is fuzzy

Businesses running promotional schemes face ongoing confusion over GST treatment of freebies. Under the CGST Act, “business” is defined, but the law lacks a clear yardstick to determine when an activity is done “in course or furtherance of business.” That ambiguity can lead to different interpretations of whether promotions trigger GST implications.

CGST Act defines “business,” but doesn’t clarify testing yardsticks
Promotional schemes raise disputes over “in course or furtherance”
Freebies may be treated differently depending on interpretation
Uncertainty can increase compliance risk for firms

#business #gst #cgst act #compliance #promotional schemes

Read the full story at The Economic Times

This summarization was done by Beige for a story published on The Economic Times

GST on freebies keeps businesses guessing as rules blur what counts as business activity

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