Classification of intern for GST and TDS.

For taxation and other purpose Is he an employee or a consultant providing professional services?

If he is treated as an employee, Professional tax is deducted and PF is also deducted, then he is an employee and the payment is outside the ambit of GST.

If he is a consultant is he exempted from GST(Income under 20L) or should we deduct GST?

Since his income is less than Rs.20 lacs, there is no GST implication. There is no provision for deduction of GST.

The classification depends on whether the intern is an employee or an independent service provider.

If there is a formal appointment letter, fixed hours, supervisor control, and a structured role: treat as employee. TDS applies under Section 192. GST does not apply to salary or stipend paid to employees.

If the intern works on a freelance or outcome basis with no fixed hours: treat as contractor. TDS applies under Section 194J at 10% if total payments exceed Rs 30,000/year for professional or technical services.

For RCM and GST: manpower supply BY a body corporate attracts 18% GST under RCM per Notification 13/2017. An individual intern is NOT a body corporate. RCM on manpower supply does not apply to services by an individual person. No RCM applies here.

Practical rule: if the arrangement functions like employment (fixed stipend, office hours, supervisor), classify as employee. This [manpower supply GST guide](https://taxgarden.in/blog/gst-on-manpower-supply-staffing-services-rate-rcm-india-2026) clarifies the RCM applicability for individual vs agency arrangements.