GST in EPF and ESI components

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4 Points Posted on 14 June 2020
Dear sirs
our man power service provider charges GST in EPF and ESI components in man power bill.. Whether GST has to be paid
only on basic amount plus service charges or to be paid on gross amount.
please mention relevant sections of GST to understand better
regards
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On 14 June 2020 at 19:19 Report
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Quick Summary
This discussion clarifies whether Goods and Services Tax (GST) applies to Employee Provident Fund (EPF) and Employees' State Insurance (ESI) components in manpower bills. The consensus is that GST is applicable on the gross amount, including these contributions, as they are considered part of the taxable value of the service. Relevant sections of the CGST Act, particularly Section 15 concerning 'Transaction Value', are cited to support this interpretation, stating that taxes and charges levied under other laws are taxable under GST.

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110 Points Posted on 14 June 2020
Whatever amount they are making you pay is sale for them.So they should charge gst on all the taxes which form part of the salaries
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On 14 June 2020 at 20:02
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4215 Points Posted on 14 June 2020
Your a registered dealer under GST Act
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On 14 June 2020 at 21:12
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GST Practitioner
55067 Points Posted on 14 June 2020
Any taxes, fees, charges levied under any law other than GST law is taxable in GST . Hence GST attracts on Expenses reimbursement even though it's ESI or PF .
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On 14 June 2020 at 22:17
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Student
23693 Points Posted on 14 June 2020
GST needs to be paid on the GROSS AMOUNT ( including EPF and ESI components ). GST is levied on the "Transaction Value" as per Section 15(1) of the CGST Act 2017 and TV includes any taxes, duties, fees levied under any Statutes but not GST.

Refer the Valuation Provision of Section 15 of the CGST Act 2017.
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On 14 June 2020 at 22:21
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4 Points Posted on 24 June 2020

My finance section is not concurred in to proposal of   paying GST on EPF and ESI components in manpower bill.  My question is under which conditions GST is not applicable on ESI and EPF components of manpower bill.  Are there any condition that if the EPF has been shown seperately in invoice, GST is not necessarily paid. Please enumerate

 

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On 24 June 2020 at 14:53

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