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GST on Supply of Labour

This query is : Resolved 

Dear All,


We have been engaged by a company to supply only labours (pure labour supply to manufacture) on daily wages basis and we are registered with GST along with ESI and PF.

Would appreciate if we get a suitable guidance and clarification to a situation that we are facing presently regarding understanding the applicability of GST. In order to explain our issue, wish to elaborate as follows:

a) The labours would be paid daily wage around @ Rs.310/- per day
b) ESI would be @ 3%
c) PF would be @ 12%
d) Bonus would be @ 8.33%
e) Additional/Extra labour supply (if any) @ Rs.310/- per day
f) Service charges would be @ 15% (including e but not including b, c & d)
g) Finally, we raise the Invoice to the company @ 18% GST incluidng ESIC, PF, Bonus, Service Chages & Extra i.e. a to f above.

Is above our GST working is correct? As the company is asking to charge the GST only on service charge part.
We would be highly grateful if a clarity / guidance is given to us at the earliest please.

Thanking you all in advance.

Tejas Gandhi

We need to look at your contract with the company for supply of labour. you can mail to my email id.

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