Rate of GST on Labour Contract

[varsha jain]

Hello Sir.

Mr. X , (registered under GST) supplies Labour to Municipal Corporation for Projects relating to Dengue operations. what rate of GST is applicable to Mr X.

[KASTURI SETHI]

Rate of GST is 18% under HSN 9994 Notification No.11/17-CT(Rate) dated 28.6.17 as amended.(serial no.32).

Just for additional information

If only pure service is supplied (excluding Works Contract and without any material) to Municipal Corporation and activity is covered under Article 243 W of the Constitution it is exempted vide Notification No.12/17-CT(Rate) dated 28.6.17 (Serial No.3)

AI Summary

GST on labour contracts: standard HSN 9994 rate applies; pure municipal services under Article 243W are exempt.
Labour supplied for municipal dengue operations attracts the standard GST rate under HSN 9994 when provided as a works contract or with materials; by contrast, pure service supply of manpower to a municipal corporation performing functions under Article 243W is exempt under the municipal services exemption.