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RCM on labour charges?

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Manish Darji

55 Points Posted on 09 December 2023

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?

Replies (8)

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.

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 09 December 2023

Yes, RCM applicable for this labour charges.
Rate of GST @ 5%

Manish Darji

55 Points Posted on 09 December 2023

But sir , RCM is applicable for specific service only i think

RAJA P M

"Do the Right Thing...!!!"

77792 Points Posted on 09 December 2023

Yes, You are exactly correct.

This Labour Charges (jewellery sector) is under RCM as per Your said query...

V SUBRAMANIAM

Tax consultant

375 Points Posted on 11 December 2023

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.