GST REVERSIBLE FOR MAN POWER CONTRACTORS TO COMPANY

[SIVASANKARI SATHIYANARAYANAN]

RESPECTED SIRS/MADAM

I AM BAGHEERATHI CONTRACTORS AND I AM SATHIYANARAYANAN I AM DOING LABOUR CONTRACT TO COMPANIES AND I WANT REVERSIBLE CHARGES LIKE SECURITY DEPARTMENT. WE EXPECT THIS ANNOUNCEMNET MEANS WE SAVE OUR LIFE. I AM MORE TENSED DUE TO GST BECAUSE WE ARE DEPENDING COMPANIES LABOUR SERVICES AND SECURITY SERVICES TOGETHER BUT RCM ONLY FOR SECURITY DEPARTMENT NOT FOR US. WE ARE STUGGLING TO PAY GST AND EVERY TIME I GOT LOAN FROM PRIVATE BANK I CLEAR GST AND I WASTE MONEY . SO PLEASE SAVE OUR LIFE IF YOU ARE MAKING REVERSIBLE MEANS 1000 OF CONTRACTORS WE THANK TO YOU SIR. MY HUMBLE REQUEST IF GOVERNMENT MAKE THIS RCM DECISITION MEANS WE ARE MORE GLAD I PRAY GOD TO SOLVE THIS ISSUE.

THANKING YOU I AM EXPECTING GLAD NEWS OR SAD NEWS I DONT KNOW BUT I AM ALWAYS POSITIVELY

[KASTURI SETHI]

Make a representation to the Chairman, GST Council, New Delhi. You can send email. Email ID and Complete Address is available on the website.

[Ganeshan Kalyani]

Govt has brought security service under RCM and then renting of motor vehicle . Besides these two service other services are also brought under RCM. Govt may bring manpower service also under RCM in future. Govt is not getting the estimated revenue and hence may take such decision which will ensure increase in revenue. Under forward charge the taxpayers are getting advantage of basic exemption of registration and do not register and pay tax whereby govt does not get revenue. Govt may aim to bring the said service under RCM to increase tax collection.

However, as rightly advised by Sri Kasturi Sir, kindly write to GST Council. GST Council is very active and are keen to ease business and thus your representation or request may be heard by the Madam.

AI Summary

Reverse charge mechanism: Government may extend RCM to manpower supply to secure tax collection; stakeholders urged to represent. Contractor requests that manpower supply to companies be made subject to the reverse charge mechanism like security services, citing cash-flow and registration burdens; replies advise representing to the GST Council and note that government has applied RCM to some services and may extend it to manpower to protect tax revenue where forward charge allows suppliers to avoid registration.