Applicant must pay GST on bonus payments to security personnel per Authority ruling.

The Authority ruled that the Applicant must pay GST on the portion of payment related to bonus payments to deployed security personnel. The ruling was subject to the provisions of the GST Act unless declared void under Section 104(1).

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Issues:
1. Admissibility of the Application
2. Submissions of the Applicant
3. Observations & Findings of the Authority

Admissibility of the Application:
The Applicant, a registered society providing security and scavenging services to government hospitals, sought a ruling on the GST liability for bonus payments to security personnel. The application was deemed admissible under Section 97(2)(c) & (e) of the GST Act as the question was not decided by any authority. The officer raised no objection, leading to the admission of the application.

Submissions of the Applicant:
The Applicant supplied services to government hospitals, classifying them under SAC 998525. The service charges included minimum wages, EPF, ESI, and bonus, with separate bills for bonus payments. The Applicant claimed GST on the total amount, excluding bonus bills. The agreement with a hospital clarified the service and payment structure, supporting the Applicant's submissions.

Observations & Findings of the Authority:
The Authority noted that the Applicant provided security personnel, not employees of the State Government, under SAC 998525. The Applicant was responsible for recruitment, deployment, and statutory dues of the personnel. The agreement did not establish an employer-employee relationship between the hospital and security personnel. Therefore, the Applicant was liable to pay GST on bonus payments to security personnel, as they were not guided by Schedule III.

Ruling:
The Authority ruled that the Applicant must pay GST on the portion of payment related to bonus payments to deployed security personnel. The ruling was subject to the provisions of the GST Act unless declared void under Section 104(1).

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