RCM applicable on manpower services

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This query is : Resolved

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Reverse Charge Mechanism (RCM) can apply to manpower services under GST, but only in specific circumstances. If you receive manpower services from an unregistered supplier, your business, as the registered recipient, is responsible for paying the GST directly to the government. However, if the manpower service provider is registered, they will charge GST on their invoice, and RCM will not be applicable.

Daya

Daya (Querist)
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31 January 2022 whether RCM applicable on Manpower services received .

CA Altamush Zafar

CA Altamush Zafar (Expert)
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31 January 2022 no rcm. rcm applicable only in case of security personnel and that too subject to certain conditions.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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20 July 2025 Yes, RCM (Reverse Charge Mechanism) is applicable on manpower supply services under GST in certain situations.

When is RCM applicable on manpower services?
If a registered person receives manpower supply services from an unregistered service provider, then the recipient (registered person) is liable to pay GST under reverse charge.
This means the registered business has to pay and deposit GST on such services directly to the government.
If the manpower service provider is registered under GST:
They will charge GST on their invoice, and RCM does NOT apply.

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