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.

AI Summary

GST Applies to Entire Manpower Bill, Including Labor, PF, and ESI Costs, Not Just Service Charges A forum discussion addressed the application of Goods and Services Tax (GST) on manpower bills. A manpower contractor inquired whether GST should be applied to the total bill amount, which includes costs for unskilled labor, provident fund (PF), and employee state insurance (ESI), or only on the service charge portion. Three respondents unanimously agreed that GST is applicable on the entire bill amount, not just the service charge, despite PF and ESI being treated as reimbursements without value addition.