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RCM on Labour

AkhilDeep R (127 Points)

03 August 2017

Dear All,

Whether RCM is applicable for supply of manpower under GST.
if so at wat rate ??

thanks in advance.

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12 Replies

Vijay Bhand (338 Points)
Replied 03 August 2017

if service providers turn over is less than 20 lacs , other wise he will charge GST @ 18%

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 August 2017

Yes. Man power supplies is under GST. It's tax rate are 18%. If the service provider can't registered under GST then Registered Service receiver ll be pay Tax under RCM.....

Deena.Vanan (Grad. CWA, ACA, CS(F)) (120 Points)
Replied 03 August 2017

No. RCM is not applicable for supply of manpower.

Refer Notification 13 of Central Tax (Rate)

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 August 2017

அப்படி ஏதும் இல்லையே திரு. தீனா.வாணன்.....!

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 August 2017

Appadi yethum illaiye Thiru.Deena.Vanan.....!

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Deena.Vanan (Grad. CWA, ACA, CS(F)) (120 Points)
Replied 03 August 2017

List of services attracting reverse charge are mentioned in the notification I had mentioned above. Since, Manpower is not included in that notification I had mentioned that it does not attract tax under rever charge mechanism

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 03 August 2017

So, You said...
Which is not in that notification then that all other is can't attracted under RCM......?!!

Vijay Bhand (338 Points)
Replied 04 August 2017

k/a Deena
please understand notification which u r referring that is regarding reverse charge / recipients of service.

Another RCM is if you receive any service/goods from URD means unregistered dealer under GST then you have to pay GST under RCM.

AkhilDeep R (127 Points)
Replied 04 August 2017

tqs to all for the reply ,
Mr. Vijay Bhand can u elaborate like , is there any cut off limit .
My company(const.com) receives labour services from many providers ,who I guess never registered for ST and never use to charge any . we just use to deduct TDS on payment .

so whether my company is liable for GST payment under RCM for those labour payments who are not registered???

thanks in advance