pure labour under construction contract gst

[Asked by Guest]

sir please explain concept of pure labour under construction contract under gst regime...

if individual involve in construction service and hire labour from market on daily basis..pay daily wages to them ..

gst liabillity on the individual...

please guide me on this topic...

AI Summary

Pure labour contract exemption clarified; works contracts taxed and reverse charge applies for labour from unregistered suppliers.
Pure labour contracts-where the recipient supplies materials and hires labour-may be exempt under notifications for individual house construction or a single residential unit; full works contracts using the contractor's materials are taxable, with the contractor eligible for input tax credit while the recipient cannot claim ITC for works contract services. Labour procured from unregistered persons attracts GST under the reverse charge mechanism payable by the service receiver (contractor), subject to an aggregate daily exemption threshold for supplies from unregistered persons, and reverse charge obligations can trigger registration irrespective of normal turnover thresholds.