RCM on labour for construction

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account assistant
44 Points Joined January 2013
dear team pls advise that I am doing construction work and register in GST. And I am giving payment to labour for construction is RCM applicable on the payment which I am giving to them.
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On 15 October 2024 at 08:10 Report
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Master in Accounts & high court Advocate
9489 Points Joined December 2011

As a construction service provider registered under GST, you need to consider Reverse Charge Mechanism (RCM) for payments made to laborers. Here's a simplified explanation: 1. *RCM applicability*: Under GST, RCM is applicable on certain services, including labor services provided by unregistered persons (like laborers). 2. *Labor services*: Since you're paying laborers for construction work, their services are covered under RCM. 3. *GST liability*: As the recipient of labor services, you (the constructor) are liable to pay GST under RCM. 4. *GST rate*: The GST rate will depend on the nature of construction service and the laborer's location. 5. *Tax payment*: You'll need to pay GST on the payment made to laborers, which will be calculated on the reverse charge basis. To comply with RCM: - Obtain a GST registration certificate. - Identify labor services provided by unregistered persons. - Calculate GST liability on payments made to laborers. - Deposit GST under RCM using Form GSTR-3B. - Maintain records of labor payments and GST paid under RCM.

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On 15 October 2024 at 09:57
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28018 Points Joined May 2017
You cannot any rcm on this.
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On 15 October 2024 at 15:15
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account assistant
44 Points Joined January 2013
Thanks
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On 17 October 2024 at 19:00


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