2025-VIL-187-AAR
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SGST Advance Ruling Authority

GST – Kerala AAR - Manpower Recruitment Services, COVID-19 lockdown payments, GST Applicability – Applicant is a charitable society that provides manpower services to Government Departments and undertakings. During the COVID-19 lockdown, one of service recipient made interim payments to the outsourced workers supplied by the applicant even though the workers did not perform any duties during that period - Whether GST is applicable on the interim payments received by KSESL from VSSC during the COVID-19 lockdown period, when no services were actually rendered by the outsourced workers – HELD - The services provided by the applicant fall under the category of Manpower Recruitment Services, which is a taxable supply under the CGST Act. The fact that the entire amount was paid to the employees does not affect the taxability of the supply, as GST is applicable on the total consideration received for manpower services - The Government's directives, which treated the lockdown period as "on duty" and mandated the payment of wages, did not convert the nature of the payments from contractual consideration to ex gratia or compensation. The payments were still linked to the existing employment relationship and the supply of manpower services, and therefore subject to GST - In the absence of any specific GST exemption, the full amount of the interim payments received by the applicant from the service recipient during the lockdown period is subject to GST at the applicable rate – Ordered accordingly
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