Pure labour contract

2334 views 1 replies

wanted to know about pure labour contractor under gst

if recepient is limited company and provider (annual turnover is less than 20lacs) is individual

where labour works directly under contractor for admin building structural work but invoice raised on company

  • what are gst rate applicable for pure labour contractor
  • how to calculate gst if applicable
  • please explain me in details with example
Replies (1)
1. its 18% GST
2. GST on the contract value or as per the Agreement /tender filed

As per Notification 12/2017 CT (r)
Entry No.66 : Services provided by way of pure labour contracts is EXEMPTED in regard to 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.

Hence in your case the pure labour is not provided for above said , so its taxable & GST attracts

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