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Advance payment to Labour.

13 September 2017

What about the Advance Payment, paid to the Labour which will be adjusted with his/her wages after completion of work. Labour is a unregistered person.

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4 Replies

Dinesh Reddy (138 Points)
Replied 13 September 2017

Yes you have to pay and the can be adjusted in the month in which you are booking as expenditure.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 13 September 2017

@ Sujit Saha.,
What is the exact nature "Labour and Wages...?
In case they are your company employee then no need GST.
If they are contract based workers then you ll be pay Tax under RCM basis.....

CA Haritha Komma (Chartered Accountant) (1147 Points)
Replied 20 May 2019

There is no RCM on manpower supply of labour. The RCM is applicable only on supply of security personnel and not on all manpower supplies... as per sl.no. 14 of 13/2017-CGST(R)

No implication under GST on payments to labour

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 20 May 2019

Originally posted by : CA Haritha Komma
	There is no RCM on manpower supply of labour. The RCM is applicable only on supply of security personnel and not on all manpower supplies... as per sl.no. 14 of 13/2017-CGST(R) No implication under GST on payments to labour