In our case, we are maid service providers and is a proprietorship firm. We sell different maid service packages. The client who purchases our packages , pay it in full to us in advance . We bear all the expenses to fulfill the sold maid service packages. The maid/maids we use/employ to fullfill the sold maid service package are paid by us. No do not charge any commission apart from the service package charges. We have not crossed 20L annual turnover. Should we register under GST? Are we covered under the ambit of Intermediary services? All our clients are unregistered individuals , as we cater only to residences. Is Reverse Charge Mechanism (RCM) applicable to us? Please advice
Maid Service Provider
Sijith Moahmmed
Maid Service Firm Exempt from GST Registration Due to Low Turnover; Not Classified as Intermediary Services; No RCM Applied A maid service provider, operating as a proprietorship firm, sought advice on whether they need to register under GST, given their annual turnover is below 20 lakh and they cater solely to residential clients. They questioned if their services fall under 'Intermediary Services' and if the Reverse Charge Mechanism (RCM) applies. An expert clarified that their activity is classified as 'Manpower Supply' and does not require GST registration due to the turnover threshold. It was also confirmed that their services do not qualify as 'Intermediary Services,' and RCM is not applicable. Despite being advised by a GST official to register, the expert suggested obtaining written clarification, noting that Board's circulars lack statutory force. (AI Summary)