Capital
New Delhi
Currency
INR
Languages
Hindi, English, + regionals
Population size
1.4 billion
Average Monthly Salary
~$300
Region
Asia
Gift Giving Norms
Practical, culturally aware, local partner production
Major Corporate Gift Days
Diwali, New Year
Customs Complexity
Moderate
VAT - Standard Rate
GST 18–28% depending on product
Duty Free Threshold
N/A
Ave Duty Rate
Varies by product
1. Employee Merch vs. Gifts
Under Indian law, non-cash benefits provided to employees can be taxable if they serve primarily as a personal perk rather than supporting daily work tasks. The Income Tax Department (under the Central Board of Direct Taxes) clarifies whether items are a corporate necessity or part of an employee’s wage.
1.1 Merchandise for Employees
Work-Related (Generally Non-Taxable)
Uniforms & Essential Gear
If branded uniforms or safety clothing are strictly needed for the employee’s tasks (e.g., frontline staff, security), these items typically remain non-taxable.
Branded Office Accessories
T-shirts, mugs, or pens showing a prominent company logo, distributed to all staff, are frequently seen as part of the corporate identity rather than an employee’s personal benefit.
Potentially Taxable Benefits
High-Value or Personal Items
Electronics, luxury apparel, or any goods with limited relevance to the job might be deemed taxable salary. Employers must handle corresponding TDS (Tax Deducted at Source) or other obligations.
Frequent Gifting
Multiple merchandise distributions to employees within a financial year might raise concerns over hidden remuneration. Local tax advice is advised if you plan repeated gift campaigns.
1.2 Gifts for Non-Employees (Clients, Partners, Event Attendees)
Tax & Deductibility
For Indian entities, corporate gifts for promotional or relationship-building aims can be tax-deductible if well-documented. However, lavish or overly frequent gifts lacking commercial rationale could be flagged by tax authorities.
Compliance & Anti-Corruption
India’s Prevention of Corruption Act focuses on undue influence in public sectors. Documenting higher-value gifts is prudent, particularly if recipients are government officials or belong to regulated industries.
1.3 Marketing Merch
Promotional Merchandise
Items (e.g., branded T-shirts, stationery) given out at fairs or corporate events usually qualify as marketing expenses, as long as you maintain invoices and distribution logs demonstrating their promotional purpose.
2. Shipping, Customs & Duties
Shipping within India comes with its own set of considerations due to diverse regional regulations, vast distances, and varied infrastructure.
2.1 Shipping
2.2 Importing
Import Duties & GST
India levies Basic Customs Duty (BCD), Integrated GST (IGST), and additional surcharges on imported goods. The total tax burden varies depending on the product classification under the Harmonized System of Nomenclature (HSN). Free Trade Agreements (e.g., ASEAN, SAFTA) may offer tariff reductions.
Regulatory Compliance
Imported products must comply with the Bureau of Indian Standards (BIS) certification, labeling rules, and quality control regulations. Certain items, such as electronics and textiles, may require additional approvals. Importers must have an Importer-Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT).
Customs Processing & Logistics
The Customs Electronic Data Interchange (EDI) system facilitates clearance, but delays can occur due to inspections, documentation errors, or compliance issues. Many businesses rely on customs brokers and freight forwarders to streamline import processes.
2.3 DDP vs. DAP
Delivered Duty Paid (DDP)
The sender covers import taxes, easing the process for Indian recipients.
Delivered At Place (DAP)
The recipient pays upon arrival, possibly causing delivery delays if they’re not forewarned.
2.4 With Monday Merch
We (Monday Merch) collaborate with a domestic Indian production partner, eliminating the need to import standard goods from abroad for Indian deliveries:
No Major Import Duties
Producing locally avoids customs duties and import processes for typical merchandise.
Faster Domestic Shipping
Once produced in India, items can be dispatched in-country, shortening lead times significantly.
GST & Interstate Logistics
Goods and Services Tax (GST) typically applies. If shipping across state lines, an e-way bill may be required, depending on the shipment value and goods category.
3. Cultural & Local Etiquette
3.1 Gifting customs
4. Sustainability & Local Regulations
4.1 Sustainability & Regulations
5. HR & Employee Relations Considerations
5.1 HR & Employee Relations
6. Summary and Key Takeaways
6.1 Summary & Takeaways
7. Frequently Asked Questions
7.1 Questions & Answers
Do we face high duties for local employees’ merchandise?
No; we produce locally with a partner, so major import duties are avoided for domestic distribution.
Are staff merch items taxed if personal?
Yes, if they are purely personal in nature. Essential work items typically remain tax exempt under Indian rules.
How do we handle shipping in India?
Since it’s locally produced, shipping is domestic and straightforward—reduced complexity and cost.
