pure labour contract

[varsha jain]

Hello Sir my Query is - ,Mr X. is a works contractor and registered under GST. Mr. y is an unregistered supplier who supplies labour to Mr. X.. would like to know whether Mr X is liable to pay GST under RCM on the amt paid to Mr.Y.

[KASTURI SETHI]

Manpower supply is not under RCM. Supplier will pay GST if turnover is more than ₹ 20 lakhs. 'Y' will collect GST from service receiver and deposit with Govt. If turnover of ₹ 20 lakhs has crossed, 'Y' should get registration under GST.

Supply of Security Service is under RCM.

AI Summary

Reverse charge on manpower supply is not applicable; unregistered supplier must charge and remit GST when registration threshold is crossed.
Manpower or labour supply to a registered works contractor does not generally attract reverse charge; the supplier must register and charge GST if their turnover exceeds the registration threshold. Security services are an exception and are subject to reverse charge, making the recipient liable for GST in that category.