We are manufacturer wish to hire manpower for our manufacturing activity from outsource agency. Agency will comply with all statutory requirements. We will pay them service charges on the monthly manpower cost between 5% to 10%.
Bill will be raised as cost + service charges on monthly basis. Can you pls tell us that GST will be applicable only on service charges or on entire bill. Secondly can we get input tax credit of the GST charged on the same bill and utilize it against our GST liability for sale of goods manufactured by us.
GST Applies to Entire Manpower Supply Bill; Input Tax Credit Can Offset Manufacturer's GST Liability A manufacturer inquired about the applicability of GST on manpower supply charges from an outsourcing agency, questioning whether GST applies only to service charges or the entire bill, and if input tax credit on the GST charged can be utilized against their GST liability. The response clarified that GST is payable on the entire transaction value, which includes the total amount payable to the manpower supply service provider. It was also confirmed that the input tax credit is eligible for utilization against the manufacturer's GST liability. (AI Summary)
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