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TMI Blog2021 (10) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... o make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant is stated to be a registered society providing security services and scavenging services (Karma Bandhus) to different Medical Colleges & Hospital, District Hospitals and other hospitals of Government of West Bengal. 1.3 It is submitted by the applicant that as per labour laws of Government of West Bengal, the applicant claims Minimum Wage + Employer Portion of EPF @ 13% + ESI @ 3.25% and charges tax @ 18% leviable under the GST Act on gross bill amount in every month for providing security & Karma Bandhus (Scavenging) services to the Government Hospitals. 1.4 However, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .A. Branch, Government of West Bengal which is stated by the Applicant as the initial Work Order for providing security personnel to various Medical College & Hospital; * A copy of letter dated 18.05.2015 issued by the Department of Health & Family Welfare, M.A. Branch, Government of West Bengal on the subject matter of 'Engagement of Ex-servicemen through ERS (Ex-servicemen Resettlement Society) for providing security services at different Second Tier Govt. Hospital; * Copy of work order for extension of security services at B.S. Medical College & Hospital, Bankura; * Photocopy of bill issued by the Applicant to Bankura Sammilani Medical College &. Hospital for the months of June'20 and June'21 showing tax is charged on entire billing amount; * Copy of Bank Statement; * A print out of relevant pages (only two pages) of e-Tender for security services for Lady Dufferin Victoria Hospital under Memo No. LDVH/2021/828 dated 12.05.2021 where GST on 'Management Fee' has been specified. 2.5 The applicant has reiterated that few hospitals have again raised objection that employer portion of EPF & ESI amount are deposited to respective authority (i.e. EPF & ESIC). So the amount o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsigned 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. 3.6 Further both the EPF & ESI contribution amount, stated ibid, have nothing to do with the recipient of the service or the supplier of the service. These are the amount related to the employee of the supplier of the service. The role of the supplier of the service is nothing but collector cum depositor of the stated amount to specific Govt. exchequer. Now in the course of business the supplier of the service has received this amount from the recipient of the service in lieu of providing service. Hence, whatever the use of the said amount may be, it must be taxable as per laws stated above. 3.7 In this regard, the undersigned prefers to make reference towards advance ruling given by the Ld. Advance Ruling Bench of Karnataka [Advance Ruling No. KAR ADRG 02/2021 dated 29/01/2021] where though the factum was a bit different but the principle was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-section (1) of section 5 of the Integrated Goods and Services Tax Act, 2017 reads as under: * (1) Subject to the provisions of sub-section (2), there shall be levied a tax called the integrated goods and services tax on all inter-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 of the Central Goods and Services Tax Act and at such rates, not exceeding forty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person: Provided that the integrated tax on goods imported into India shall be levied and collected in accordance with the provisions of section 3 of the Customs Tariff Act, 1975 on the value as determined under the said Act at the point when duties of customs are levied on the said goods under section 12 of the Customs Act, 1962. 4.5 It follows from above that except in cases of integrated tax on goods imported into India, tax under the GST Act as well as IGST Act shall be levied on the value determined under section 15 of the GST Act. 4.6 For the sake ..... 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