GST is liable to be paid @18% on the reimbursement of EPF and ESI contribution as the same is liable to be included in the value of supply as per Section 15 of the CGST Act, 2017.
Levy of GST— In the instant case, applicant is engaged in processing of milk and manufacturing of various milk products. The applicant is availing the services of various manpower supply agencies. The applicant has sought advance ruling on following question-
GST liability on reimbursement of Employee Provided Fund & ESI.
In the instant case, Labour contractor cannot be treated as pure agent as the contractor is not procuring any additional services from the third party and instead of this the contractor is providing/supplying the single service of manpower supply and the contractor is charging for the said service only.
it is evident that the contractor of the applicant does not fulfil the conditions of pure agent of the recipient of service (i.e. the applicant).
Held that— Accordingly, GST is liable to be paid @18% (9% COST and 9% SGST) on the reimbursement of EPF and ESI contribution as the same is liable to be included in the value of supply as per Section 15 of the CGST Act, 2017.
GST is liable to be paid @18% on the reimbursement of EPF and ESI contribution as the same is liable to be included in the value of supply as per Section 15 of the CGST Act, 2017.
Levy of GST— In the instant case, applicant is engaged in processing of milk and manufacturing of various milk products. The applicant is availing the services of various manpower supply agencies. The applicant has sought advance ruling on following question-
GST liability on reimbursement of Employee Provided Fund & ESI.
In the instant case, Labour contractor cannot be treated as pure agent as the contractor is not procuring any additional services from the third party and instead of this the contractor is providing/supplying the single service of manpower supply and the contractor is charging for the said service only.
it is evident that the contractor of the applicant does not fulfil the conditions of pure agent of the recipient of service (i.e. the applicant).
Held that— Accordingly, GST is liable to be paid @18% (9% COST and 9% SGST) on the reimbursement of EPF and ESI contribution as the same is liable to be included in the value of supply as per Section 15 of the CGST Act, 2017.