In re Exservicemen Resettlement Society (GST AAR West Bengal)
GST is payable on complete billing amount including employer portion of EPF & ESl Amount
West Bengal Authority for Advance Ruling has held that GST is payable on the entire billing amount, including the Employer’s contribution of Employees Provident Fund (EPF) or Employee State Insurance (ESI), if any, falling within the complete billing amount.
Facts:
Ex-servicemen Resettlement Society (“Applicant”) is a registered society providing security services and scavenging services (Karma Bandhus) to different Medical Colleges & Hospitals.
As per labor laws of the Government of West Bengal, the Applicant claims Minimum Wage + Employer Portion of 13% EPF plus 3.25% ESI and charges tax at the rate of 18% leviable under the Central Goods and Services Tax Act, 2017 (“the CGST Act”) on gross bill amount in every month for providing said services to the Government Hospitals.
The Audit Authority (Indian Audit and Accounts Department, West Bengal) in course of audit of Bankura Sammilani Medical College and Hospitals has raised the objection of excess payment of GST upon the observation that ‘GST’ must be payable only on Management Fees/Services Charges.
The Applicant has sought the advance ruling on whether employer portion of EPF and ESl amount of the bill are exempted for paying GST.
Issues:
1. Whether GST to be payable on Management Fee/Administrative charges only or otherwise complete billing amount?
2. Whether employer portion of EPF & ESl amount of the bill are exempted for paying GST?
Held:
The West Bengal Authority for Advance Ruling in the matter of Order no. 09/WBAAR/ 2021-22 dated 30/09/2021 held as under:
