Sir
There are two contractors in my factory for loading/unloading of material and billing amount more than ₹ 50 lacs each.
Both these contractors have not taken GST number and not charge any tax from me, though GST registration limit is ₹ 20 lacs for service providers.
In above case, if both contractors not taken any GST number and not charged tax from me, whether I m liable to pay any tax under reverse charge or is there any liability on me if both contractors not taken any GST number and paid taxes to Govt.
Contractors Exceed GST Threshold Without Registration; Factory Owner Not Liable Under RCM for Unregistered Services A contractor raised concerns about two contractors working at a factory without GST registration, despite their billing exceeding the GST threshold of 20 lakhs. The forum discussed whether the factory owner is liable for tax under reverse charge mechanism (RCM). Responses clarified that manpower supply is not under RCM and that services from unregistered persons do not impose GST liability on the recipient. It was advised that the contractors should register for GST to comply with the law, and the factory owner should encourage them to do so for their own benefit. (AI Summary)
TaxTMI 
TaxTMI 
