GST ON MANPOWER BILL

[RAJU D]

If a manpower contractor provides unskilled manpower to a manufacturing company, 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

2. There is no value addition on PF & ESI, can we treat as reimbursement

Please guide us.

[KASTURI SETHI]

Query-wise reply is as under:-

1. GST is payable on full bill amount.

2. No.No benefit on basis.No deduction.

[DR.MARIAPPAN GOVINDARAJAN]

In my view also GST is payable on full amount.

[Ganeshan Kalyani]

Yes, I too agree with experts collegue. GST is applicable on entire amount charged by the supplier of service.

AI Summary

GST on manpower supply applies to the entire billed amount, including PF and ESI reimbursements, not only service charge. Supply of unskilled manpower is taxable and GST must be charged on the entire invoice value billed by the contractor; amounts representing payroll disbursements and statutory contributions such as Provident Fund and ESI included in the bill are not deductible or treated as non taxable reimbursements for computing the GST base.