Pure Labour Contract

[VIGNESH]

Sir.My client is in construction business and he is currently planning for taking labour contract for repair /renovation and construction for residential building owned by a single owner and single unit. will it be taxable ? or can i claim exemption

[Padmanathan KV]

If its a pure labour contract in respect of a single residential unit, its exempted.

[Shilpi Jain]

The above referred exemption entry reads as below:

Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex.

The activity of repairs and renovation are not covered. Hence no exemption available.

[Padmanathan KV]

Agreed. Only construction of original work will be exempted. So the actual contract has to be seen.

AI Summary

Pure labour contract exemptions apply to original construction of single residential units, while repairs and renovation remain taxable.
GST exemption applies to pure labour contracts for original construction works pertaining to a single residential unit; the exemption excludes repairs and renovation. Whether the exemption applies depends on the contract's true character and whether the work is original construction and not part of a residential complex.