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GST in EPF and ESI components

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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5 Replies

krishna patil (110 Points)
Replied 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

KRISSHNAN KP (4215 Points)
Replied 14 June 2020

Your a registered dealer under GST Act

1 Like

Pankaj Rawat (GST Practitioner) (55030 Points)
Replied 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 .

Shivam RC (Student) (23683 Points)
Replied 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.

3 Like

SHYAM SUNDER (4 Points)
Replied 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