GST on Supply of Labour

This query is : Resolved

Tejas Gandhi (Querist)
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28 October 2020 Dear All,

Greetings!!!

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