Gst on labour contract

238 views 5 replies

Jailendra Kumar

81 Points Joined May 2017

A LABOUR CONTRACT SUPPLY WORKERS TO MY ORGANIZATION FOR WHICH HE RAISED BILL AS FOLLOWS:

1. MANDAYS 200 Rs.400/-per mandays 80000.00

2. Add.:CPF 12% 9600.00

3. Add.:ESI 3.25% 2600.00

4. Add. 7% Commission on -1 5600.00

Total 97800.00

My question is on which amount GST will be calculated? Someone says GST will be calculated on Commission only but someone says Mandays+Commission. Please suggest.

Replies (5)

Akshay Jain

Tax Consultant

1024 Points Joined February 2018

you have to calculate the GST @ 18% if you taking any contract and when the RCM will unsuspend then you to pay the RCM from that period.

GST will be calculated on manadays and commission

sujith kumar dasa

banglore

1496 Points Joined June 2012

GST is applicable on entire amount of invoice including Mandays,PF, ESI and commission. However if it is Security services received from non corporate assessee then GST is applicable under RCM

Akshay Jain

Tax Consultant

1024 Points Joined February 2018

Dear Sujith sir,
how can they apply GST on PF ESI etc. please explain

Jailendra Kumar

81 Points Joined May 2017

Dear Sujith,

Please reply the question as raised by Akshay Jain.

The EPF and ESI paid by Contractor is his responsibility to remit those with respective departments being an employer. However he is charging such amounts to customer based on agreeement entered between them. Hence even if you show such breakup in invoice GST would be applicable on whole invoice. Also note such recovery would not fall under Pure agent because the liability iof PF and ESI is responsibility of employer and not customer.