SUPPLY OF MAN POWER UNDER GST

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A client is supplying school bus drivers to a private school and is unsure about GST implications. While the school deducts TDS, the supplier is registered for GST and handles payroll, ESI, and PF. They were incorrectly advised that manpower supply is not subject to GST and have been declaring it as Nil Rated. This clarification seeks to determine the correct GST treatment for supplying manpower to educational institutions, specifically if it falls under the exemption for transportation of students and staff.

raghavendra b

raghavendra b (Querist)
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19 February 2023 DEAR SIR,

ONE OF MY NEW CLIENT SUPPLY SCHOOL BUS DRIVER TO ONE OF PRESTIGIOUS SCHOOL THE SCHOOL PEOPLE DEDUCTING TDS AS PER INCOME TAX RULE. BUT HE ALSO HAVING GST AND MAINTAINGING ESI, PF, AND MASTEROLL. BUT SOMEONE MISGUIDED HIM TO THERE IS NO GST ON SUPPLY OF MANPOWER. HE IS SHOWING TURNOVER IN NIL RATED SUPPLY OF SERVICE. THE INSTITUE TRANSFER SALARY AMOUNT TO HIS BANK ACCOUNT THEN HE PAYING SALARY TO HIS DRIVERS. FOR THOSE ONE TRANSACTION THEY MISGUIDED HIM THERE IS NO GST LIABLITY FOR MANPOWER SUPPLY.

PLEASE SIR CLARIFY ME

REGARDS

CA. Bhavik P. Chudasama

CA. Bhavik P. Chudasama (Expert)
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24 February 2023 As per Notification 12/2017 of Central Tax (Rate)

Services provided -
(b) to an educational institution, by way of,- (i) transportation of students, faculty and staff;

Above Service is NIL Rated.

So you can check if it is covered under above services same will be Exempt.

raghavendra b

raghavendra b (Querist)
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25 February 2023 THANK YOU FOR YOUR REPLY SIR,

BUT ONLY MANPOWER SUPPLY TO THE PRIVATE SCHOOL NOT PROVIDING TRANSPORTATION SERVICES.

REGARDS

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