hello sir our co is receiving labour charges bill without gst bcz supplier is not registered under gst, so our co have to pay RCM on labour charges on diamond jewllery and hw much gst is there?
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Quick Summary
This discussion clarifies the applicability of the Reverse Charge Mechanism (RCM) on labour charges for diamond jewellery. While generally RCM applies to specific services, there's a key distinction: if the supplier is unregistered and their turnover is below the prescribed limit, RCM is not applicable. However, if the service falls under specific RCM provisions, GST at 5% would be payable.
Some sepcified services and goods are covered under RCM u/s 9(4) of GST. goods or services received from unregistered persons was removed from RCM wef 18.11.17. this is my understanding.