Labour charge & spares

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This query is : Resolved

krishna murthi (Querist)

01 October 2017 We have received one bill for motor vehicle . He is charged for spares gst and not for service of Labour charge. It is valid

CA S K MISHRA

CA S K MISHRA (Expert)

01 October 2017 Since the said service is not covered under reverse charge, it is the liability of Service provider. Service recipient should not worry about it. Its valid

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krishna murthi

krishna murthi (Querist)

01 October 2017 thanks. whether we can take input credit on labour

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 Not valid but you dont have to worry for this as you properly take ITC of what he charged from you.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

01 October 2017 You can't claim ITC on labour as same is not charged by seller.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

31 October 2026 A registered workshop must charge GST on labour too (18%), so ask for a corrected invoice; however ITC on motor vehicle repair, servicing and spares is blocked u/s 17(5)(a)/(ab) unless the vehicle is used for transport of goods or other specified purposes.

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