TaxTMI 
TaxTMI 
Sir,
I do pure man power supply service to both CENTRAL and state Government. Who should pay the GST? Service provider or receiver?
Man power supply service to govt
27 Nov 2017 
12 Replies 
20002 Views Asked by
Manpower supply to government: nil-rate GST applies when services directly perform functions entrusted to local bodies.
Pure manpower supply to government is taxable unless it constitutes a pure service directly in relation to functions entrusted to Panchayats or Municipalities; such outsourced services performing the enumerated public functions are eligible for a nil rate exemption, whereas supplies outside those entrusted functions remain taxable. Suppliers must assess whether deployed personnel perform statutory local-body functions to determine applicability of the nil-rate and whether normal GST charging (rather than reverse charge) applies. (AI Summary)
Pure manpower supply to government is taxable unless it constitutes a pure service directly in relation to functions entrusted to Panchayats or Municipalities; such outsourced services performing the enumerated public functions are eligible for a nil rate exemption, whereas supplies outside those entrusted functions remain taxable. Suppliers must assess whether deployed personnel perform statutory local-body functions to determine applicability of the nil-rate and whether normal GST charging (rather than reverse charge) applies. (AI Summary)