GST leviability on reimbursement expenses

[phaniraju konidena]

Dear Experts,

We have reimbursed the PF and E.S.I expenses of our production contractor's workforce as per the agreement in between us. Kindly advise whether there is any GST liability on us?. We have not received any services/goods from the contractor for such amount.

regards,

phani

AI Summary

GST on reimbursed statutory labour contributions depends on manpower supply classification and reverse or forward charge liability.
GST on reimbursed PF and ESI depends on whether the transaction is a manpower supply service and whether tax is payable by the contractor or under the reverse charge mechanism by the recipient. If the contractor charges and pays GST on manpower supply, reimbursements form part of the contractor's taxable value; if not and reverse charge applies, the recipient may be liable. Manpower supply is commonly treated under forward charge with provider liability, though specific services (e.g., security agency services to a registered person) can attract reverse charge.