Five Budget Mistakes Bangalore Companies Make on Corporate Gifting
Published 2026-04-17 by Barath A. R.
1. Treating gifting as a cost, not a retention tool
The CFO looks at a ₹10 lakh annual gifting spend and asks what the ROI is. The answer isn't in this year's numbers — it's in next year's attrition. A thoughtful anniversary gift to a 5-year employee is cheaper than replacing them. Budget for gifting like you budget for learning and development: as an investment with long-term returns.
2. Equal gifts for unequal occasions
A ₹1,500 hamper works for Diwali. It's inadequate for a 10-year work anniversary. Differentiate tiers: Diwali (company-wide, modest), milestones (personalised, premium), VVIP client gifting (bespoke, experiential). Lumping them into one budget line is lazy procurement.
3. Leaving 20% of budget for "emergencies"
That 20% always gets spent on last-minute gifts bought at 4x the price because someone forgot an anniversary. Plan the calendar in January — every known anniversary, every festival, every likely exec gift need. Build the list, lock the budget, and only keep 5% buffer.
4. Assuming cheaper = better ROI
A ₹400 branded cotton tote with your logo will embarrass your brand if the recipient spots the stitching coming apart. A ₹700 canvas tote from a good supplier lasts three years and 200 public appearances. Cheap gifting is a false economy — the recipient associates the quality with your company.
5. Not capturing input tax credit
Most informal vendors skip the tax invoice. You pay 18% GST and can't claim the input credit because the invoice isn't in your legal entity's name with correct GSTIN. On ₹10 lakh annual spend, that's ₹1.8 lakh of unclaimed ITC. Use a GST-compliant supplier.
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