Pure labour services for a standalone residential dwelling unit qualify for GST exemption when no materials are supplied.

Pure labour services used for construction, erection, commissioning or installation of original works are exempt under Entry No. 11 of Notification No. 12/2017-CT(R) when supplied for a single stand-alone residential dwelling unit and not as part of a residential complex. The exemption applies only where the service provider supplies no goods or materials. On the stated facts, the services were confined to labour for standalone residential units, with no material supply and no involvement of apartments or housing projects, so the supply qualified for GST exemption subject to the prescribed conditions.

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Issues: Whether pure labour services supplied for construction, erection, commissioning, or installation of original works pertaining to a single stand-alone residential dwelling unit, otherwise than as part of a residential complex, are exempt under Entry No. 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.

Analysis: Entry No. 11 exempts pure labour contracts relating to construction, erection, commissioning, or installation of original works when the supply is for a single residential unit and not as part of a residential complex. The notification defines original works, residential complex, and single residential unit, and the exemption applies only where no goods or materials are supplied by the service provider. On the facts, the services were confined to pure labour for stand-alone residential dwelling units, with no supply of materials and no involvement of apartments, housing projects, or residential complexes.

Conclusion: The services qualified for the exemption under Entry No. 11 and were held to be exempt from GST, subject to fulfilment of the prescribed conditions.

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