we supply cut vegetable to dominos and there was a contractor who supplies labor for cutting of vegetable in my company. does he charge GST on labor bills or not. Please clarify.
Supply of labor for cutting vegetable in a industry
Rajeshwar Jaisawal
GST Applies to Labor for Vegetable Cutting; Not Exempt as Agricultural Activity, Must Ensure Compliance If Threshold Exceeded. A query was raised regarding the applicability of Goods and Services Tax (GST) on labor supplied for cutting vegetables in an industry. The consensus among respondents was that the supply of labor, categorized under manpower services, is taxable under GST. This includes services provided for cutting vegetables, as they are not considered agricultural activities and do not qualify for GST exemption. The service is taxable regardless of the GST era, and businesses must ensure compliance if they exceed the prescribed threshold limit. (AI Summary)
TaxTMI
TaxTMI