GST on Man Power Contract for University

[Souresh Kulshreshtha]

If a manpower contractor provides unskilled and skilled manpower to a University, when they generate bill, they will charge cost per manday which is inclusive of PF and ESI to the engaged manpowers. As well as, they will charge some amount towards service charge ( Service charge / Manpower ). GST charged on total amount of bill.

Here, salary will be transferred to concerned manpower, only service charge will be the income of the contractor.

Regarding PF & ESI also has to pay to government and shown to company to get full amount.

Request the forum on the following:

1. GST has to charge on total bill amount or their service charge as University cannot claim input credit

AI Summary

GST valuation on manpower contracts requires tax on full billed consideration unless pure agent conditions exclude reimbursements.
Taxable value of a manpower supply ordinarily includes all amounts charged, including salary reimbursements and statutory contributions, unless the supplier qualifies and documents payments as a pure agent, in which case those amounts may be excluded; entitlement to input tax credit depends on possession of valid tax invoices, receipt of services, payment of tax, and filed returns, and the contractual characterisation of the worker engagement determines whether amounts are treated as reimbursed costs or as salary.