Question ID :
44911
RCM 9(4) on Payment to Contractor who sends labourers
Client a Builder/Developer doing Real estate project under JDA with Land owner.A contractor will send many labourers.Builder pays to contractor and deduct TDS under IT Act 194C.Contractor has no GST.Will this payment to contractor needs to be considered in80:20ratio of mandatory requirement of purchase from regd dealer?If 80% requirement failed, whether liable to RCM 9(4)?If yes,How to avoid RCM for this?
Posted by
Sivaraman A.R.
on
Aug 19, 2025
Filed Under
GST
To avoid RCM ? either ensure contractor gets GST registration or ensure sufficient purchases from registered suppliers.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Aug 27, 2025
Answer ID :
86028
This requirement of 80:20 is only for residential projects where you have opted for the Consessional GST rate. The Same would not apply for the Commercial projects. I endorse the view of Suraj Sir on the alternatives.
Posted by
SREENIVASULU THULASIRAM on
Nov 17, 2025