Labour Cess applicable on cost of construction without GSt or gross cost

[Sangeeta Garg]

My client got a house constructed in Vasant Vihar. He is seeking a CA certiifcate to pay labour cess. In my view he should pay it on cost of construction plus other items i.e lift, solar etc. but not on GSt . Rate is @1%. He may add gst on solar etc. but not on cost of construction. Further he has to pay it directly as per contractor this has nothing to do with him as this is assessment now.

Client is not registered under GSt. Kindly advise.

AI Summary

Labour cess applicability on construction cost excludes GST and covers ancillary items, treated as a fee payable by employer.
BOCWW Cess applies on the Total Cost of Construction, including ancillary components like lifts and solar, but excludes GST from the cess base; GST on ancillary items may be invoiced separately. The levy is characterised as a fee earmarked for welfare purposes rather than a tax, and payment/assessment mechanics commonly involve the employer or contractor regardless of the client's GST registration.