GST Applicable on ESIC & EPF?

[Orion Safety]

Dear Sir,

We are providing Menpower Services ( Un - Skilled (Safai Karamchari) & Semi - Skilled (Security Guards)) to an University in Punjab, I have been advised by the university that GST will not be applicable in case of ESIC & EPF contribution..I am not able to find any notification stating so, kindly advise is it right? With Regards...Neeraj

[KASTURI SETHI]

There is one case law of CESTAT New Delhi based on the judgment of Supreme Court pertaining to pre-GST era. In GST as per Section 15 of CGST Act, 2017 as amended, no deduction is allowed.

M/S M.P. SECURITY FORCE VERSUS COMMISSIONER OF CENTRAL EXCISE & SERVICE TAX [2019 (8) TMI 211 - CESTAT NEW DELHI]

 

[Himansu Sekhar]

But after amendment of sec.67 wef may 15, every reimbursable expenditure is includible. EPF and other charges are part of the gross salary. In my view these are includible in the gross value

[KASTURI SETHI]

I agree with Sh.Himansu Sekhar Ji. Period of case law is prior to May, 15.

[YAGAY andSUN]

Valuation in GST GST(Goods and Services Tax)

Compulsory Inclusions

Any taxes, fees, charges levied under any law other than GST law, expenses incurred by the recipient on behalf of the supplier, incidental expenses like commission & packing incurred by the supplier, interest or late fees or penalty for delayed payment and direct subsidies (except government subsidies) are required to be added to the price (if not already added) to arrive at the taxable value.

Hence, in our view, ESIC & EPF is includible.

[Ganeshan Kalyani]

Yes , ESIC, PF will form part of consideration and shall offered to tax.

[Himansu Sekhar]

During GST period, there is no doubt about the inclusion

[DR.MARIAPPAN GOVINDARAJAN]

I concur with the views of the experts

AI Summary

ESIC and EPF Contributions Included in Taxable Value for GST on Manpower Services, Say Forum Participants A discussion on a forum addressed whether the Goods and Services Tax (GST) applies to Employee State Insurance Corporation (ESIC) and Employees' Provident Fund (EPF) contributions when providing manpower services to a university in Punjab. The consensus among participants, referencing legal precedents and GST regulations, is that ESIC and EPF contributions are included in the taxable value under GST. Various contributors cited the CGST Act, 2017, and amendments to support the inclusion of these contributions as part of the gross salary, thus subject to GST.