whether labour charge is taxable under gst.
for example if we sale certain material for Rs1000 and charged gst @ 18% and charges labour charges Rs200,for Rs200 gst is applicable.
kindly advise
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Tax invoice
Replies (4)
Quick Summary
Yes, GST would be applicable on the entire amount of Rs. 1,200 @ 18%. It's a Composite Supply and the labour service is naturally bundled with the Principal / Main Product. And as per the Provision of Section 8 of the CGST Act 2017, Composite Supply shall be taxable at the PRINCIPAL PRODUCT RATE.
Hence 18% GST would be applicable on the entire value of Rs. 1,200 ( Rs. 1000 Material Rate + Rs. 200 labour charges ).
Hence 18% GST would be applicable on the entire value of Rs. 1,200 ( Rs. 1000 Material Rate + Rs. 200 labour charges ).
In term Section 8 of CGST Act R/w Valuation rule it is composit Supply , hence GST will be applicable on labour charges also.
Applicable
Yes, it is applicable on the entire invoice value
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