Payment to workers

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Accountant
115 Points Posted on 24 October 2020
we run cotton ginning factory and workers who work in our factory are local unregistered people's. we pay them daily bases....

Should we have to pay gst on rcm basis?
please tell me I'm in confusion
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On 24 October 2020 at 23:17 Report
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Quick Summary
This discussion addresses whether GST under the Reverse Charge Mechanism (RCM) applies to payments made to local, unregistered workers on a daily basis in a cotton ginning factory. While there was initial confusion, the consensus is that RCM is not applicable for paying wages to company workers, even if they are unregistered or sourced from farmers.

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Tax consultant
5895 Points Posted on 24 October 2020
As per the new rule you have to pay gst on rcm basis even you buy from framer the raw cotton
sorry my ans that side got wrong due to spell n tab mistake
1 Reply
On 24 October 2020 at 23:37
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Accountant
3662 Points Posted on 24 October 2020
Not required to pay GST under RCM for payment to workers
1 Reply
On 24 October 2020 at 23:40
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Jr. Account & Finance Manager
213 Points Posted on 25 October 2020
RCM NOT APPLICABLE ON PAYING WAGES TO COMPANY WORKERS
1 Reply
On 25 October 2020 at 19:56

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