APPLICABILITY OF GST ON PAYMENT OF ACTUAL WAGES THROUGH LABOUR CONTRACTOR, Goods and Services Tax - GST

[kunal kumar]

We are giving services to a company for various IT related services. Now we want to provide Human resource services on actual basis for our customer. We want to do this as a pure agent, and will not charge any extra for the same. Can we make bill like:

Particular qty Amount

Repair of computer 2 Rs. 10,000.00

Salaries for Caller 10 Rs. 50,000.00 (as pure agent)

CGST @9% Rs. 900.00

SGST @9% Rs. 900.00

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Total Taxable Rs. 10,000.00

Total Non-Taxable Rs. 50,000.00

Total GST Rs. 1,800.00

Total Bill Rs. 61,800.00

 

 

Is it allowed in GST billing. And moreover, will Rs. 50,000.00 will counted in agent turnover.

Kindly respond.

Thanks

AI Summary

IT Service Provider's HR Billing Not Pure Agent Under GST, Rule 33: Separate Charges for Repairs and Salaries Clarified. A company providing IT services seeks to offer human resource services as a pure agent without additional charges and queries about GST billing. They propose billing for computer repairs and salaries separately, questioning if the salary component counts towards agent turnover. Respondents clarify that the scenario does not qualify as a pure agent under GST rules, citing Rule 33 of the CGST Rules, 2017. A pure agent must meet specific conditions, such as making payments on behalf of a recipient without benefiting from the transaction. Agreement clauses need review to determine applicability.