PURE LABOR CONTRACT

This discussion clarifies the Goods and Services Tax (GST) implications for civil construction contracts involving only labour, with no materials supplied. It confirms that pure labour contracts are generally not fully exempted from GST. The threshold limit for exemption is 20 Lakhs (10 Lakhs for special category states). Additionally, Tax Deducted at Source (TDS) is applicable, and the payer is responsible for deducting it. The standard GST rate for such services is 18%.