GST charge on Labour Charges

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31 Points Posted on 16 November 2021

whether Taxable Amount for GST in the case of labour charges, is inclusive of ESIC , Provident fund & if PF paid by client whether incl in GSt as deemed income

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On 16 November 2021 at 10:16 Report
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This discussion clarifies whether ESIC and Provident Fund (PF) contributions are included in the taxable amount for Goods and Services Tax (GST) on labour charges. According to Section 15 of the GST Act, if a client pays PF on behalf of a contractor, this amount is considered deemed income and is subject to GST as part of the total supply value.

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Area Manager (Taxation)
101 Points Posted on 16 November 2021

GST is payable on total value of supply, including PF ESI etc. 

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On 16 November 2021 at 12:10
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Chartered Accountant
24588 Points Posted on 16 November 2021
Yes ...
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On 16 November 2021 at 12:14
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31 Points Posted on 16 November 2021

IF PF paid on his behalf ,by Client then the same is incl in the Contractor Bill as a deemed income for paying GST 

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On 16 November 2021 at 12:34
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Area Manager (Taxation)
101 Points Posted on 16 November 2021

As per provision of section 15, yes

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On 16 November 2021 at 13:01

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