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GST ON pure labour contract

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.

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2 Replies

praveen (Chartered Accountant) (6971 Points)
Replied 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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