GST on Hamali charges

[Kavali Ramanjeneyulu]

One Kiranam trader incurred expenditure on Hamali workers. Is RCM applicable on Hamali charges during the period from July 2017 to 13/10/2017 in terms of Notfn no 8/2017-CT dt 28/6/2017 issued under sec 9(4) of CGST Act. Please clarify.

AI Summary

Clarification on Hamali charges: Taxable under RCM at 5% if part of GTA services, otherwise FCM at 18%. Section 9(3) relevant. A trader inquired about the applicability of Reverse Charge Mechanism (RCM) on Hamali charges during a specific period in 2017 under the CGST Act. The response clarified that Hamali charges, related to loading and unloading goods, are taxable and not exempt under RCM. If included in the invoice as part of Goods Transport Agency (GTA) services, GST is charged at 5% under RCM. If billed separately, it falls under manpower supply, which is not subject to RCM, and the Forward Charge Mechanism (FCM) rate is 18%. Section 9(3) of the CGST Act applies, not Section 9(4).