Chargeability of gst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 January 2018 Contractor A has engaged a subcontractor B for execution of contracts relating to erection & Commissioning. Subcontractor B is deducting employee contribution towards PF from the wages of worker engaged in the job and depositing employee's share and equal amount of employer share to the PF authorities. Subcontractor B is calming from main Contractor A 50% of employer's share, he has already deposited and the main contractor is making payment of 50% to the subcontractor B.

Weather these payments of 50% share of Employer's contribution by A to B attracts GST.

ND (Expert)
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09 January 2018 Since Contractor A is reimbursing the actual payments made for PF contributions by Contractor B which could have been added to the total receipts of Contractor B, thus GST will be applicable in this case.

Querist : Anonymous

Querist : Anonymous (Querist)

15 January 2018 Payment of 50% of employer's contribution by A to B is not an additional payment this is as per terms of agreement enter into by A with B and the contract price payable to B has been determined after considering this issue. Is GST applicable in this situation?

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