Gst for labour contractor

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Article Assistant
88 Points Joined December 2013
"My client is a labour contractor registered in Maharashtra who provided labour services in Maharashtra only, but the client to whom he provided services has a GST number from *Haryana*.

In this case, is the Reverse Charge applicable under GST?"
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On 13 October 2024 at 18:25 Report
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Master in Accounts & high court Advocate
9447 Points Joined December 2011

Under GST, Reverse Charge (RC) applies when a registered person receives services from an unregistered person. However, in your client's case, the service recipient (the client with a GST number from Haryana) is a registered person. Since the service recipient is registered, the liability to pay GST shifts to them under the Forward Charge mechanism. Your client, the labour contractor, will not be liable to pay GST under Reverse Charge. However, there's an important consideration: - Inter-state supply: Since the service recipient is from Haryana and your client is from Maharashtra, this is an inter-state supply. Your client may need to register for GST in Maharashtra as an inter-state supplier, even if their turnover is less than the threshold limit.

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On 13 October 2024 at 21:08
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32 Points Joined June 2018

Forward charge only applicable.

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On 15 October 2024 at 22:13


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