Payment to driver contractor

sir,

we have engaged a driver contractor to our compsny, he will supply manpower for delivery of goods from one place to other place.

We are the responsible person to allocate duty to driver, we are having full rights on driver during his duty time.

contractor will claim salary, PF and ESI for driver based on his duty performed during the month.

in addition to that contractor will charge 10% service charges.

rightly contractor charging 18%GST on his total invoice value including drivers salary, PF and ESI.

we know that the salary will be transfer to drivers account without taking any commission by contractor, so it's purely reimbursement of expense by contractor.

kindly let me know any possibility to avoid GST on salary part?

note: we are from agriculture industry so we unable to any ITC.
Replies (2)
Quick Summary
A company engaged a driver contractor for goods delivery, with the company allocating duties and having full control during work hours. The contractor claims salary, PF, and ESI, plus a 10% service charge, with 18% GST applied to the total invoice. The company seeks to understand if GST can be avoided on the salary portion, as it's considered a reimbursement of expenses. They also note they are in the agriculture industry and cannot claim ITC.

Pl tell me who is the labour contractor?
Thanks for your concern sir, contractor is one of the proprietor having regular registration under GST.

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