Labours provides unregistered person

My company's Work is construction and it takes labor from an unregistered contractor then company will have to deposit reverse charge tax

please suggest and pls metion notification no


Thanks expert
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Quick Summary
This discussion clarifies the Goods and Services Tax (GST) implications when engaging unregistered contractors for construction work. Previously, a Reverse Charge Mechanism (RCM) applied to payments exceeding £5,000 to unregistered dealers, requiring the company to deposit the tax. However, this requirement was cancelled effective from 1st February 2019. Therefore, companies no longer need to deposit RCM tax when procuring labour from unregistered contractors under the current GST rules.

Under GST, there was RCM on buying from an unregistered dealer where payment is above Rs. 5,000. This requirement has been canceled from 1st Feb 2019 onwards. 

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