GST on Bonus Paid to Labour Hired from Labour Contractor

This query is : Resolved 

06 November 2019 In our manufacturing plant we have hired 700 nos. of labour for manufacturing purpose through labour contractor and for diwali bonus as per the agreement contractor has raised Tax invoice and charged GST. Invoice amount -50 lacs and each labour been paid by Rs.10000.

Whether GST Will be applicable on bonus in this case or not.

07 November 2019 In case , you hired labour thru contractor , payment to contractor will be as payment to contractor towards manpower hire .

Contractor will charge GST on his invoice which may include bonus paid by contractor to their employees

07 November 2019 Whether same will be the case with Security Gaurd Agency and in that case we have pay under RCM


07 November 2019 Yes
Payment to agency providing security services in under RCM . GST need to be paid under RCM .
Service charges may include bonus to employee etc , which will not effect the person hiring such agency



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