Labour(Labour Supply) contract will also considered as sub contract 12% GST
Dear Sir/Madam, We are received work contractor for water supply projects from government projects and project funded by JUNNRM(Jawaharlal Nehru National Urban Renewal Mission )GOI & Tamil Nadu Government. In works contract provision 12% GST on our sales(Revenue) bill and some work passed to sub contract and also they provision on us GST rate on 12% and then Labour contract will also considered as sub contract 12% only as per the provision… As per the Vide Notification No. 1/2018-Central Tax (Rate) New Delhi, the 25thJanuary, 2018, GST rate reduction from 18% to 12% on works contract services provided by sub-contractor to the main contractor in-turn providing works contract services to Central Government, State Government, Union Territory, a local authority, a Governmental authority or a Government entity with effect from 25th Jan�2018 which attract GST of 12%. My Ans is : Labour(Labour Supply) contract will also considered as sub contract 12% GST applicable.. ( if yes GST is applicable means please provide notification etc., Please advice us
Asked 5 years ago in GST
Yes labour contract would be considered under sub contract and 12% rate should be applicable.
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Thank you.
Hello,
GST at 12% should be charged by the sub-contractor for the labour supply to the main contractor.
I hope that this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Dear Sir,
Hope you are doing well !!
Yes, Labour(Labour Supply) contract would be considered as sub contract hence 12% GST applicable.
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