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.