The HSN (Harmonized System of Nomenclature) code for labor charges falls under the category of services, specifically related to various types of labor and manpower services. Under the GST regime in India, labor charges can be classified under different Service Accounting Codes (SAC) depending on the nature of the service provided.
Generally, labor charges for work such as maintenance, repair, installation, or any other form of manual labor fall under SAC code 9985, which covers "Support services."
Detailed Breakdown of HSN Code 9985:
- 99851: Employment services including personnel search, referral, and placement services
- 99852: Temporary employment agency services
- 99853: Other human resources provision services
For other specific types of labor charges, such as those related to construction, maintenance, or repair, the SAC code 9987 (Maintenance, repair, and installation services) may be applicable:
- 99871: Maintenance and repair services of fabricated metal products, machinery, and equipment
- 99872: Maintenance and repair services of motor vehicles, motorcycles, and other transport equipment
- 99873: Maintenance and repair services of other goods
- 99874: Installation services (other than construction)
GST Rates for Labor Charges:
The GST rate for services under these HSN codes is generally 18%, but it can vary depending on the specific nature of the service. It is advisable to consult the latest GST rate schedule or a tax professional to ensure accurate classification and taxation.
Example Classifications:
- Construction labor charges: Could be under HSN code 9954 (Construction services)
- Repair and maintenance labor charges: Typically under HSN code 9987
- General manpower supply services: Under HSN code 9985
