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Influencer Barter & Gifting Tax Calculator

See the real tax and P&L cost of influencer seeding, barter and gifts after GST credit reversal and TDS on perquisites.

Reviewed by CA Apurav GargUpdated Calculated in your browser; copied links include your figures

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Calculator

Note:
Example values — replace with yours.

Campaign

Year
Campaign type
TDS above the threshold

Values

What a customer would pay, before GST.

Manufacturing or purchase cost.

Presets are today’s common rates. Use “Custom rate” for any other rate, including special rates and rates for earlier periods.

Leave at 0 for product only.

Your result

True P&L cost of the campaign

₹2,54,355.56

For 20 recipients: ₹1,70,000.00 in direct cost, plus 49.6% in reversed GST credit and TDS the brand pays. Each recipient’s benefit of ₹25,000.00 is above ₹20,000, so TDS applies (Section 393(1) [S. No. 8(iv)]).

Direct cost
₹1,70,000.00
GST credit reversed
₹28,800.00
TDS the brand pays
₹55,555.56
Cost per recipient and in total
Per yearPer recipientTotal
Benefit to the recipient (selling value + cash fee)₹25,000.00₹5,00,000.00
Direct cost (product, shipping, cash fee)₹8,500.00₹1,70,000.00
GST credit reversed₹1,440.00₹28,800.00
Grossed-up benefit₹27,777.78₹5,55,555.56
TDS the brand pays₹2,777.78₹55,555.56
True P&L cost₹12,717.78₹2,54,355.56

TDS 10% on benefits above ₹20,000 a year per recipient (Income-tax Act, 2025, Section 393(1) [S. No. 8(iv)]). Free gifting reverses the input GST credit on the products given away.

What this tells you

Products sent to creators and customers are not only a product and shipping cost. Free gifting can mean reversing the GST credit on those products, and a benefit above ₹20,000 a year to one recipient brings TDS at 10%.

Enter the campaign to see the true P&L cost per recipient and in total, and the TDS to pay or collect before you send the products.

Assumptions used

  • Product GST rate choices: 0%, 5%, 12%, 18%, 40%, or a custom rate.
  • The benefit is valued at your selling price excluding GST, plus any cash fee.
  • All benefits to the same recipient in the year are added together before comparing with the threshold.
  • In free gifting, the input GST on the product cost is reversed; shipping and other costs are taken excluding GST.
  • When the brand bears the TDS, the benefit is grossed up at the TDS rate.
  • Figures are rounded for display only; the working uses exact values.
Legal references and sources
Business perquisites TDS threshold (aggregate per recipient per year)
Section 393(1) [Table S. No. 8(iv)], Income-tax Act, 2025 (for tax year 2026-27 onwards); section 194R, Income-tax Act, 1961 (for FY 2025-26).
Last verified 27 Oct 2026
Business perquisites TDS rate
Section 393(1) [Table S. No. 8(iv)], Income-tax Act, 2025 (for tax year 2026-27 onwards); section 194R, Income-tax Act, 1961 (for FY 2025-26).
Last verified 27 Oct 2026
GST credit on gifts and free samples
Section 17(5)(h), CGST Act, 2017 — input tax credit is not available (and must be reversed) in respect of goods disposed of by way of gift or free samples without consideration.
Last verified 27 Oct 2026
Product GST rate choices
Notification No. 09/2025–Central Tax (Rate) dated 17 September 2025, effective 22 September 2025, on the recommendations of the 56th GST Council meeting (nil, 5%, 18% and 40%); verified as on 2 November 2026. Use 'Custom rate' for special rates such as 3% or 0.25%, and for 12% or 28% on sales made before 22 September 2025 (28% plus cess continued on tobacco and pan masala until 31 January 2026).
Effective from 22 Sept 2025 · Last verified 27 Oct 2026 · Official source

How this is calculated

  1. Benefit per recipient = units × selling value + cash fee.
  2. Direct cost = units × cost per unit + shipping + cash fee.
  3. GST credit reversed = units × cost per unit × input GST rate (free gifting only).
  4. Benefit at or below the threshold: no TDS. Above it, if the brand bears the TDS: grossed-up benefit = benefit ÷ (1 − rate), TDS = grossed-up benefit − benefit.
  5. If the TDS is recovered: TDS = benefit × rate; to collect before dispatch = TDS − cash fee, not below 0.
  6. True P&L cost = direct cost + GST credit reversed + TDS the brand pays. Totals = per recipient × recipients.

Terms used here

Worked examples

Example: 20 creators, 10 kits each at ₹2,500

Free seeding. Cost ₹800 a kit with 18% input GST, shipping ₹500 per creator, no cash fee. The brand bears the TDS.

  • Per creator: benefit ₹25,000.00, direct cost ₹8,500.00, GST credit reversed ₹1,440.00.
  • The benefit is above ₹20,000: grossed up to ₹27,777.78, TDS ₹2,777.78; true cost ₹12,717.78 per creator.
  • Campaign: direct cost ₹1,70,000.00, credit reversed ₹28,800.00, TDS ₹55,555.56. True P&L cost ₹2,54,355.56, 49.6% above the direct cost.
  • If the TDS is recovered instead: ₹2,500.00 to collect from each creator (₹50,000.00 in total), and the brand’s cost is ₹1,98,800.00.

Our GST & TDS Compliance service covers TDS deduction and returns, and GST credit records.

Questions sellers ask

Is TDS due when we only send products, with no cash?

Yes. TDS on business perquisites applies to a benefit in kind as well as cash. When the value a recipient receives from you in the year is above ₹20,000, TDS at 10% applies (194R under the 1961 Act; Section 393(1) [S. No. 8(iv)] under the 2025 Act). With no cash payment to deduct from, you either pay the TDS yourself or collect it from the recipient before you send the products.

What happens when the brand pays the TDS itself?

The TDS you pay is a further benefit to the recipient, so the benefit is grossed up: benefit ÷ (1 − rate). The TDS is the grossed-up amount less the original benefit, and it is a cost to the brand.

Why does free gifting reverse GST credit?

Input tax credit is not available (and must be reversed) on goods given away as gifts or free samples without consideration. So the input GST you claimed on products you give away has to be reversed, which adds to the cost. In a two-way barter where both sides issue GST invoices, the products are a supply, so no credit is reversed.

Which value is used for the benefit?

This tool uses the price at which you sell the product to customers, excluding GST. Check the value your records support, especially for products you do not sell.

Is the threshold per campaign or per year?

Per recipient, for all benefits you give them in the financial year. Add every kit, gift and cash fee for the same person before you compare it with ₹20,000.

Does the year matter?

The Income-tax Act, 2025 replaces the 1961 Act from tax year 2026-27. The rule carries over under a new section number; choose the year to see the section that applies.

Want our team to look at these numbers alongside your books?

We keep books, file GST and TDS returns and prepare monthly MIS for D2C and marketplace sellers. Share your figures and we will walk you through what we find.

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Disclaimer

A planning estimate for general information only, based on the figures you enter and the TDS and GST settings shown. It is not professional or tax advice. How a benefit is valued and taxed depends on the facts of each arrangement.

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