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GST exemption on Manpower Supply to Central Government

Eswar Reddy S (CFO- at NHTF) (58270 Points)

23 September 2023

Is GST exemption available for Manpower Supply to Central Government?

We are working in Central Government.
We get GST ( Tax Invoice) from manpower recruitment agency but we can't avail ITC.

Is Manpower recruitment agency require to collect GST ?

Earlier there was exemption ( Pure service to central government) is exempt from GST

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8 Replies

Prof Suhasini (1732 Points)
Replied 23 September 2023

I think there is no exemption for THIS PARTICULAR SERVICE

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 23 September 2023

Any notification or circular on this ?

Suresh Kumar (Account) (403 Points)
Replied 24 September 2023

Exemption of Pure Service :-

"Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution"

2. Pure service provided to Central Govt which have no correlation to article 243G of the Constitution or article 243W of the Constitution activities, are taxable to normal course.

3. Manpower recruitment agency is required to collect GST with normal rate (if point 2 applicable)

You have also deducted TDS as per Section 51 of CGST Act.