GST QUERY # LABOUR COST DEBITED

[ABHILASH PANICKER]

Dear Sir,

We are a manufacturing Unit , using manpower on contract basis ( production & other supportive work ) and take the GST Benefit also .,

Query:-

1 ) We are hiring 0.5% to 1% extra manpower to checking Input i.e. supplier Quality issues (recommend by supplier only ) @ our factory premises and the labour cost amount debited to supplier.,

Know my query is that whether we charged GST on such debit amount or not.

Regards

[Ravinesh Sinha]

Proportionate ITC is reversible on the amount deducted from supplier leviable Or ITC involved in extra manpower should be reversed

[KASTURI SETHI]

Manpower supply is not under RCM. However, you are requested to elaborate your query for fool-proof reply. Post major terms and conditions of the agreement/contract executed with the Contractor. This will help to ascertain exact nature of the service and nature of relationship between both persons.

[Shilpi Jain]

Terms of agreement would be relevant in this case.

If the agreement is silent on this aspect suggested that GST is charged on this amount recovered from the supplier.