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GST rule of Man power charges

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MUKESH

ACCOUNTANT-

40 Points Posted on 04 July 2020

My buyer of Haryana taking service from local labour and total amount of charges he charge from me. What is gst rule in this case. my company in delhi

Replies (6)

Quick Summary

This discussion clarifies GST rules for manpower charges when a Delhi-based company's buyer in Haryana uses local labour. The buyer is charged for the labour service, and the question is about who is liable to pay GST under the Reverse Charge Mechanism (RCM). The consensus is that since the labourers are local and no formal invoice or agency is involved, RCM likely doesn't apply, and there's no immediate demand for tax in this specific scenario.

KRISSHNAN KP

1708 Points Posted on 05 July 2020

GST @ 18%

Hemal Makwana

Designation

384 Points Posted on 05 July 2020

What type of rule are you asking, whether cgst/sgst will be levied or IGsT or you mean to ask GST rate?

KRISSHNAN KP

1708 Points Posted on 05 July 2020

Further help you may contact me

CA Rashmi B

Assistant Manager

354 Points Posted on 05 July 2020

The question is not clear. Are you supplier of labour service. if so the rate would be 18% and the if receipeint is located outside delhi IGST would be applicable.

MUKESH

ACCOUNTANT-

40 Points Posted on 06 July 2020

I am a supplier of goods our buyer from other state took service of local labour at their state. Service charge of labours he charged from me. So In this case Who is liable to pay tax under rcm my buyer or me, or there is no rcm apply? Labours are local there is no any agency and they didn't issue any invoice or voucher.
please reply to clear this point.