GST on Manpower bill

[Bhaskar Rao]

Dear Sir

Whether Manpower service provider has to Charge GST on Total bill amount of salary or only on service charge amount.

Thanks and regards

Bhaskar Rao

[Ganeshan Kalyani]

As per Section 15 of the CGST Act, tax is payavpa on the total value of supply which shall include the expense which the supplier of service is liable to pay in course or providing such service. Hence, the amount of salary paid by the manpower supplier to his labour shall also attract gst.

[Ganeshan Kalyani]

The manpower supplier of service shall include the salary component in the value of the service and charge GST on total value.

[Ganeshan Kalyani]

Pls. Read *payavpa* as payable. Typing error.

[Bhaskar Rao]

thanks to all

[KASTURI SETHI]

I agree with the views of Sh.Ganeshan Kalyani Ji.

[Ganeshan Kalyani]

Thank you Sir.

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ganeshan

[ASIT ROY]

What should be happened when the man power supplier generate Debit Note on supply of labour as Reimbursement of Expenses and generate invoice for service charges on the amount of salary reimbursement amount. Say, in the month of March, the main power supplier issued a Debit note for ₹ 5 lacs on salary payment as Reimbursement of Expenses and generate a invoice of ₹ 1 lacs i.e. 20% of the Salary Reimbursement amount. Whether the both are taxable under GST or not? if both are taxable then how could GST can be charged of Salary

[Vikas Kumar]

If the Services of Pure Agent Services, the Portion of Salary Paid subject to Fulfillment of Pure Agent Condition - GST need not be charged on the same. Only on the portion of Management Fee same needs to be charged.

AI Summary

Value of supply: GST applies to manpower services including salary component unless pure agent exception applies.
The taxable value of manpower services comprises the total value of supply, including salary paid to deployed labour, so GST should be charged on the total billed amount; however, amounts qualifying as reimbursed expenses under the pure agent concept may be excluded and GST charged only on the management/service charge.