Gst calculation on Labour/manpower service bill

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This query is : Resolved

kaushal j suthar (Querist)

06 November 2019 Sir, Please Tell me any one how to calculate GST On Manpower Supply Service.

For Example Total Work Days in Month 468 Days Rate Per Work Day Rs.313.5
Basic Amount (468 X 313.5) = 1,46,718/-
Service Charge for Man power supply (1,46,718 X 8%) = 11,737/-
ESI 3% on Basic Amount(1,46,718 X 3%) = 4,402/-
PF 13.5 % on Basic Amount(1,46,718 X 13.5%) = 19,293/-
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Total = 1,82,150/-
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IGST on (1,82,150 X 18%) = 32,787/-
Grand Total Bill Amount (1,82,150+32,787) = 2,14,937/-
Please replay me above calculate correct or wrong.
IF any wrong plz provide calculate sheet.
IF Correct any circular or Notification reference pls.

CA Anita Bhadra

CA Anita Bhadra (Expert)

06 November 2019 Your calculation is correct if you raise consolidated bill including manpower day + service charges + statutory payments ie PF , ESI etc and charge GST on total amount ( including PF, ESI etc )

In case you raise itemized bill then wages / Salary and its components are items on which GST is not chargeable, provided salary and its components are reimbursed at actual with the service fee to the manpower agency being charged separately and not forming part of their income. If that is the case, components such as PF and ESIC would not be subject to GST.

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