India's GST applies to contract employees, with key differences in salaries, tax rates, and compliance essentials.
In India, staffing services and contract employees are crucial for various industries, including IT, manufacturing, and logistics.
For foreign investors and compliance managers, GST treatment of contract employee remuneration raises questions, as it differs from permanent employees' salaries, which are exempt from GST.
Remuneration for contract employees falls under the GST regime, affecting costs, ITC eligibility, and compliance obligations.
Author's summary: GST applies to contract employees in India.