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Is the GST applicable for labour charges?

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Is the GST applicable for labour charges?
posted Mar 26, 2018 by Adarsh

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1 Answer

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As per schedule III of cgst act, no gst shall be charged for the services provided by an employee to the employer in the course of his employment.

If you pay labour charges to a person who is working on your guidance, using Your resources and remuneration will be paid treating that person as your employee, no gst is payable.

If the same labor is provided by any contractor, then :

  1. the activity of such contractor shall be taxed as man power supply service and gst shall be charged accordingly.

  2. On the amount Payable by such contractor to those labor shall be in the course of their employment and no gst shall be charged on the same.

answer Mar 27, 2018 by Vijay