Advance Ruling- The present appeal has been filed against the Advance Ruling Order issued by the Authority for Advance Ruling, Uttar Pradesh.

As per Appellant, in order to complete the business they are availing the service of various man power supply agencies under an agreement. As per the agreement the Appellant is making payment to the service providers for services provided as well as for other statutory liabilities like EPF, ESIC etc. 

The Authority for Advance Ruling, ruled that GST is liable to be paid @18% (9% CGST 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.

This authority find that, the appellant is a recipient of services in the subject case. The impugned transactions are not in relation to the supply of goods or services or both undertaken or proposed to be undertaken by the appellant and therefore, we are of the view, that it is outside the purview of mandate given to Advance Ruling Authority/AppeIIate Authority on Advance Ruling. 

Held that- The subject application cannot be admitted as per the provisions of Section 95 of the CGST Act and should have been rejected ab-initio by the Advance Ruling Authority.