GST rate for Pure Labor Services

[Asked by Guest]

Hello Sir, If one construction firms let us say ABS & Co. provides only labors to other construction company let us say Patil Ltd. then is this service exempt as per Sl. No. 10 & 11 of Notification No. 12/2017-Central Tax (Rate) dated 28.6.2017??? If not what will be the GST rate levied by ABS & Co. for supplying service to Patil Ltd. Please clarify.
Thanking You..!!!

[DR.MARIAPPAN GOVINDARAJAN]

In my view it is exempted.

[KASTURI SETHI]

I endorse the views of Dr.Govindarajan,, Sir.

Very Thank you Experts. If you could provide me some more clarification I will be very thankful for the same.

As service provider is construction firm (registered under GST) and service receiver is construction company and labors are supplied for construction of Road and other commercial infrastructure then also is it exempt from GST?? Note- Contract is not works contract)

[KASTURI SETHI]

Supply of labour falls in the category of, "Manpower" irrespective of the fact what kind of job done by the labourers (manpower) supplied. The activity of supply of labour is entirely different service/supply from construction service and works contract service. We cannot mix up both services.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir.

AI Summary

Manpower supply exemption - pure labour supplied between construction firms treated as distinct service and exempt from GST.
Experts conclude that supply of labour by one construction firm to another qualifies as an exempt manpower supply under the relevant notification entries and is a distinct service separate from construction contracts or works contracts, so tax treatment follows the exemption for pure labour supply rather than the rules applicable to execution of construction or works contracts.