GST number not taken by contractor

[KARAN VERMA]

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.

AI Summary

Reverse charge mechanism does not apply to manpower supply; ensure supplier GST registration and preserve ITC eligibility.
Manpower supply for loading/unloading is not subject to the reverse charge mechanism; only certain services like security attract reverse charge. Receipt of services from unregistered persons is not an offence and does not create an immediate GST liability for the recipient, but if the supplier later demands GST the recipient cannot claim Input Tax Credit on those invoices. Parties should ensure contractual terms require GST registration and compliance.