GST is payable on management fee, employer portion of EPF and ESI for the purpose of determination of value of supply.
Levy of GST— section 15 of CGST Act— The applicant submits that he is engaged in providing security services and scavenging services to various Medical College and hospitals for which he charges the amount to be paid to the guards as per Minimum Wages Act. The issue involved in the instant case, is to decide the value of supply in respect of the supply of the services on which the applicant is liable to pay tax under the GST Act.
following questions has been raised for advance ruling—
(i) Whether GST to be payable on Management Fee/Administrative charges only or otherwise complete billing amount?
(ii) Whether employer portion of EPF & ESl amount of the bill are exempted for paying GST?
Regarding the point of inclusion of employer’s contribution towards EPF & ESI separately indicated in the bill, the submission of the undersigned is that, sub-section (2) of section 15 of the CGST Act 2017 (supra) categorically clarifies that each and every component of the invoice, except GST taxes, must form a part of the taxable value. Hence there is no ambiguity that EPF & ESI amount shown in the bill has to be included in the taxable value to calculate the GST liability.
Held that— Section 15 of CGST Act leave no room to deduct any amount like management fee, employer portion of EPF and ESI for the purpose of determination of value of supply under section 15 of the GST Act meaning thereby in the instant case, tax is leviable under section 9 of the Act ibid on the entire billing amount.
GST is payable on management fee, employer portion of EPF and ESI for the purpose of determination of value of supply.
Levy of GST— section 15 of CGST Act— The applicant submits that he is engaged in providing security services and scavenging services to various Medical College and hospitals for which he charges the amount to be paid to the guards as per Minimum Wages Act. The issue involved in the instant case, is to decide the value of supply in respect of the supply of the services on which the applicant is liable to pay tax under the GST Act.
following questions has been raised for advance ruling—
(i) Whether GST to be payable on Management Fee/Administrative charges only or otherwise complete billing amount?
(ii) Whether employer portion of EPF & ESl amount of the bill are exempted for paying GST?
Regarding the point of inclusion of employer’s contribution towards EPF & ESI separately indicated in the bill, the submission of the undersigned is that, sub-section (2) of section 15 of the CGST Act 2017 (supra) categorically clarifies that each and every component of the invoice, except GST taxes, must form a part of the taxable value. Hence there is no ambiguity that EPF & ESI amount shown in the bill has to be included in the taxable value to calculate the GST liability.
Held that— Section 15 of CGST Act leave no room to deduct any amount like management fee, employer portion of EPF and ESI for the purpose of determination of value of supply under section 15 of the GST Act meaning thereby in the instant case, tax is leviable under section 9 of the Act ibid on the entire billing amount.