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Gst on manpower service

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This query is : Resolved

kumar agnivesh (Querist)

10 July 2019 My office has outsourced an employee from an agency. Employee salary is Rs 20000/-. Service charge is Rs 200/-. The company bills us 20,200/- + GST @18% on 20,200/-. But one person is telling that bill should be Rs 20,200/-+ GST @ 18% on Rs 200/-. So please tell what is the correct procedure.

Nandini H Gupta

Nandini H Gupta (Expert)

12 July 2019 The employee is on your company payroll or the agency?

kumar agnivesh

kumar agnivesh (Querist)

12 July 2019 Its in payroll of the outsourced company. But as per a view we are just reimbursing the salary. So gst will be just on service charge.

Nandini H Gupta

Nandini H Gupta (Expert)

12 July 2019 GST is on supply. It would be purely depended on the agreement b/w your co. and the agency "whether to call a salary a pure agent(subj to all conditions) or a supply with service charge"

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