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Manpower supply service

Mariappan (Student CA final new) (106 Points)

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?

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CA Altamush Zafar (GST Consultant) (15976 Points)
Replied 21 September 2021

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

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VIKAS ESNAPURAM (CA-JOB) (226 Points)
Replied 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.