Contractor work

if a contractor receive payment directly from govt without supply of any goods i.e labour contract then what are the tax implications on it under gst.as no bill is raised for it.just a lumpsum of 19 lacs is received.
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Quick Summary
This discussion clarifies GST implications for contractors receiving direct government payments for labour contracts, even without a formal bill. While advance payments for services are generally taxable, the applicability of GST on labour supply depends on specific exemptions. It's advised to consider the payment inclusive of tax and remit GST accordingly, while also checking relevant exemption notifications for clarity on taxable vs. exempt labour services.

Gst is applicable on Advance received in case of service.
You should consider 19 lakh as inclusive of tax and pay gst to the government.
But contractor is saying that on supply of labour their is no gst.
Gst applicable

Read item no. 10, 11 and 54 of attached Exemption Notification.

Rest labour supply are taxable.

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