Home Forum Goods and Services Tax - GST Month 8 2019 2019 (8) This
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Applicability of GST for Labour hired through a Labour Supplier - Goods and Services Tax - GSTExtract Would appreciate if we get a suitable guidance and clarification to a situation that we are facing presently regarding understanding the applicability of GST. In order to explain our issue, wish to elaborate as follows: 1. We are into execution of a Project a site which involves Erection and Commissioning of a solar power project. 2. We have been engaged by our Customer to carry out the said work. This involves we hiring labours supplied by a Labour Supplier Firm. They have a registered GST along with ESI and PF too. Now, the following typical working which we wish to list out to understand what would be the basis of computing GST payable: (a) The Labours would be paid as per minimum wages = ₹ 450/-. (b) ESI would be aound 4% on this which is payable. (c) PF would be @ 12% plus 12% (Total 24%). (d) Service charge payable to the Labour supplier is 10%, which we presume should be on ₹ 450/- and should not include the items under (b) and ( c) above. (e) Finally once they Invoice us, the 18% GST (guess the rate is correct) payable should be on ₹ 450 + 10% (18% on ₹ 500/-) or should it include the total of ESI and PF payable too ? (f) Further in such a case TDS deductible should be on which amount ? We would be highly grateful if a clarity / guidance is given to us at the earliest please. Thanking you all in advance..
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