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Labour charges GST

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basant

manager finance

46 Points Posted on 07 August 2022

We are registered in Gujarat state. We got a composite works contract order in Karnataka state from a Private company. We do not have registration in Karnataka state. We intend to supply materials and want to hire a labour contractor to do erection works at site who is registered in Karnataka state.

Question -

1. Which GST will labour contractor charge IGST or CGST+SGST?

2. Will we get GST ITC credit of labour charges, if CGST+SGST be charged and same if it charges IGST (we are not registered in Karnataka state)?

3. if labour contractor is not registered then, are we required to GST under RCM?

Replies (3)

Quick Summary

This discussion addresses GST implications for a Gujarat-registered company undertaking a composite works contract in Karnataka. Key questions revolve around whether a Karnataka-registered labour contractor should charge IGST or CGST+SGST. It also explores the eligibility for GST Input Tax Credit (ITC) on these labour charges, depending on the tax levied. Finally, it touches upon the potential requirement for GST under Reverse Charge Mechanism (RCM) if the contractor is unregistered.

sabyasachi mukherjee

Profession

19978 Points Posted on 07 August 2022

Gst registered contractor . then he will get input tax credit.

Kishor Lulla

656 Points Posted on 08 August 2022

If you are buying entire material and labour from kar, then obtain reg in kar and claim ITC. also you can issue tax invoice from kar and levy cg plus sg.
it means nothing from guj.
in labour, no provision of rcm.