Labour law and gst
Querist :
Anonymous
(Querist) 05 February 2018
This query is : Resolved
my query is who should bear the burden of payment of GST either contractor or the principle employer when the contract labour is less than 20. please clarify the doupt with some case laws.
Guest
(Expert) 05 February 2018
Which organization is principal employer and how many contract labour has been engaged through contractor and in which capacity of your company you have asked the question?
Sri Vijayan.A
(Expert) 05 February 2018
1. GST is payable by Contractor only. (for works contract, it is 18%)
2. Principal Employer shall deduct the GST and pay into contractors GST account.
3. If contractor's yearly turn out is less than the ceiling, he can get the deducted (paid) GST amount refunded by filing the return.
4. No. of employees is dealt in Factories Act only. GST Rules shall discuss about the amount of money involved and not about the no. of employees engaged.
Thank you.
A. Sri Vijayan
R.Ramachandran
(Expert) 05 February 2018
Please indicate whether the contractor in question is carrying out construction activity, or only supplies manpower?
Querist :
Anonymous
(Querist) 05 February 2018
It is a industrial corporation undertaking by the government of india in which 4000 employees were working in its complex.the complex provides service like canteen cum food court facility to all those who work in the complex and the canteen run by contractor under the supervision of industrial corporation,and totally 18 worker working in the canteen regularly,the principle of canteen is to provide quality food at cheaper rates,after the suddenly gst is imposition by the govt,contractor cannot make the profit and also he should not increse the price of the food.so he shut down the canteen.here the issue is who should liable to pay gst and the canteen employees can claim permanent employement from the management or not.clarify the query with respective provision with case laws.Thank you
Guest
(Expert) 05 February 2018
Your problem can be understood, but what would you do with the case laws, when you have not replied my question on the aspect of your capacity in the organisation in which you have asked the question.
Also, when there is no visible confidentiality or secrecy about the information, why there was a need for you to ask the question anonymously?
Querist :
Anonymous
(Querist) 05 February 2018
I am law student,my professor gave this problem to find the solution.so i was researching the issues i coundn't find it sir.i had many doubt regardind the problem sir
Sri Vijayan.A
(Expert) 06 February 2018
Being a law student, no need to hide your identity.
Coming to the problem, though it is an academic query, this situation happens now in many organisations.
In many organisations, parties come to a compromise/settlement through negotiations on the term who is to bear the cost of GST.
on legal aspects, we have to look into the contract T & C. If the consideration is inclusive of all taxes, the contractor has to bear the GST. If it is exclusive of any taxes, the Principal employer has to bear.
Thats all.
Dont afraid to show your identity, you are going to be lawyer.
Querist :
Anonymous
(Querist) 06 February 2018
Thank you sir.and i have a no fear to hide my identity.this is im first time using,i did not aware all these, just interested to ask the questions. that's it.thank you sir
Dr J C Vashista
(Expert) 09 February 2018
No reply for an "anonymous" author who has stated to be a student in his subsequent post.
Clear your doubts in class-room, this site is not meant to teach you law but for needy litigants.
