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GST ON pure labour contract

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krishna patil

106 Points Posted on 05 January 2022

I have a client who is a civil contractor.He recently provided pure labour services(no material) for a subcontract work he undertook.As this is a non gst supply please guide on how to account it in gstr 1 and gstr3b.Also are SAC codes applicable for non gst supplies,I am assuming not,but just want to make sure.Any assistance will be appreciated on this matter.

Replies (2)

Quick Summary

This discussion clarifies the Goods and Services Tax (GST) implications for civil contractors providing pure labour services. While most pure labour services are taxable at 18%, certain exemptions apply, particularly for individual house construction under government schemes like Housing for All (Urban) or Pradhan Mantri Awas Yojana, and for original works on single residential units. The guide also explains how to correctly report these supplies in GSTR-1 and GSTR-3B, confirming that SAC codes are generally not applicable for non-GST supplies.

praveen

Chartered Accountant

5709 Points Posted on 05 January 2022

Hi,

Please beware Pure Labour services are chargeable at 18% however following are exempted:

Heading 9954 Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana.

Heading 9954 Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex.

If Exempt it will be shown under Column 3 of Table 8 in GSTR 1 and Table 3.1(c) of GSTR 3B

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