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Manpower supply service

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Mariappan

Student CA final new

69 Points Posted on 21 September 2021

X Ltd supplier of manpower service to ABC Ltd. X Ltd collect ESI&PF amount from ABC Ltd as a employer contribution and remitted to the respective department. X Ltd didn't charge any margin for this transaction . for this transaction X Ltd should collect GST? Value of service include ESI & PF?

Replies (2)

Quick Summary

This discussion clarifies whether Goods and Services Tax (GST) should be charged on manpower supply services when the supplier (X Ltd) collects and remits employee ESI & PF contributions to ABC Ltd. The consensus is that GST should be applied to the entire amount, including ESI & PF, unless X Ltd acts as a 'Pure Agent' by issuing separate invoices for the ESI/PF contributions and their service fee.

CA Altamush Zafar

GST Consultant

10402 Points Posted on 21 September 2021

Yes it includes ESI & PF. Charge GST on the whole amount

VIKAS ESNAPURAM

CA-JOB

163 Points Posted on 21 September 2021

In this case, the collection of ESI/PF can be treated as service of Pure Agent by Xltd and it can be excluded provided a separate invoice is raised for the PF/ESI amount and for the other services respectively.