Labour Supply By A Contractor
Query (Issue) Started By: – Sagar Rijal Dated:- 13-11-2017 Last Reply Date:- 30-10-2018 Goods and Services Tax – GST
Got 18 Replies
GST
If a Labour Contractor, who is unregistered or registered in GST law supplies pure labour on contract basis and is liable for TDS, then how are they treated in GST law?
\nDoes RCM applies over here on the part of Service Receiver or not?
\nPlease elaborate or give a link to find this query explaining both cases i.e, incase of registered or unregistered Contractor.
\nReply By Rajagopalan Ranganathan:
\nThe Reply:
\nSir,
\nAs per Sl. No. 10 & 11 of Notification No. 12\/2017-Central Tax (Rate) dated 28.6.2017 as amended only the following are chargeable to Nil rate. Otherwise service provided by labour contractor is liable to gst either under forward charge or reverse charge.
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\nServices provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting ou<\/p>\n
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Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n Reply By Ramaswamy S: = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n spirit of GST law. = = = = = = = =<\/p>\n Plain text (Extract) only<\/strong> = = = = = = = =<\/p>\n","protected":false},"excerpt":{"rendered":" Labour Supply By A Contractor Query (Issue) Started By: – Sagar Rijal Dated:- 13-11-2017 Last Reply Date:- 30-10-2018 Goods and Services Tax – GSTGot 18 RepliesGSTIf a Labour Contractor, who is unregistered or registered in GST law supplies pure labour on contract basis and is liable for TDS, then how are they treated in GST … Continue reading “Labour Supply By A Contractor”<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-8768","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8768","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8768"}],"version-history":[{"count":0,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=\/wp\/v2\/posts\/8768\/revisions"}],"wp:attachment":[{"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8768"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8768"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/goodsandservicetax.in\/GST\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8768"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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\nThe Reply:
\nIt appears there is some clarity missing.
\nIf my understanding of the query is right- It is the supply of manpower (by labour contractor).
\nThe GST is payable by the labour contractor who needs to get registered and pay the GST. RCM is not applicable on supply of man power under GST.
\nTDS under Income Tax is applicable.
\nRegards
\nS.Ramaswamy
\nReply By KASTURI SETHI:
\nThe Reply:
\nI also think so it is an issue of supply of manpower. What kind of work is being done by the supplied labour is another issue.
\nReply By Sagar Rijal:
\nThe Reply:
\nI have two queries as on the case explained before.
\n1. If Contractor is registered under GST and supplies Labour for civil work purposes like culvert works, then how is he treated., and incase if he is not registered under GST then how is he treated?
\n2. If the contractor is an service agency providing Security services ,then how is he treated if he is registered under GST law and incase if he is not registered under <\/p>\n
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\nReply By Vamsi Krishna:
\nThe Reply:
\nBoth Labour supply and Security services are liable for GST if registered (except if ur services are as per Sl. No. 10 & 11 of Notification No. 12\/2017-Central Tax (Rate) dated 28.6.2017).
\nAnd There is no RCM (from 13th Oct'17 notification) for unregistered purchases. So you need not get registered if ur supplies are under exemption limit.
\nReply By Ganeshan Kalyani:
\nThe Reply:
\nThe clause mentioned by Sri Rajagopalan Sir in his reply clarifies what is exempted service in connection with manpower supply.
\nFurther, both manpower supply and security agency service is under forward charge and supllier of service has to register provided his turnover is crossing the threshold limit.
\nAlso, there is no reverse charge on recipient if purchase of goods or services is from an unregistered dealer.
\nReply By Sagar Rijal:
\nThe Reply:
\nThank You all of you experts and especially SETHI Sir. I have found my answer.
\nReply By Ganeshan Ka<\/p>\n
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