TaxTMI 
TaxTMI 
2025 (6) TMI 503
X X X X Extracts X X X X
X X X X Extracts X X X X
....INAYAK SADAN, GROUND FLOOR, HOUSING BOARD, PALI - 306401, Rajasthan,(hereinafter "the applicant") is fit to pronounce advance ruling as they have deposited prescribed Fee under CGST Act and it falls under the ambit of the Section 97 (2) given as under: (a) Classification of any goods or services or both (b) Applicability of a notification issued under the provisions of this Act A. SUBMISSION OF THE APPLICANT (in brief) :- Brief facts of the case: M/S BUILD LAYER CONSTRUCTIONS (hereinafter referred to as "applicant"), 1-B-5B, Kamla Nehru Nagar, Housing Board, Pali (Rajasthan) is looking forward to provide pure labor services in relation to Construction. The applicant is registered under GST having GST registration No. 08AATFB8617MIZO in the State of Rajasthan. • The Applicant entered into an Agreement to provide the pure labor Construction Services to M/s BCM BUILDERS LLP (Agreement attached). M/S BCM Builders LLP has entered into a contract with Rajasthan Government to construct 380 flats under "Affordable Housing Scheme under Pradhan Mantri Awas Yojna" (including Material and Labor). Henceforth, BCM Builders LLP has entered into sub contract....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ifferent work specialties and sub-letting the "Pure Labor Services" to the Applicant. In our opinion, the abovementioned notification is "activity based" and accordingly should be applicable for sub-contractors as well. " As per the relevant entry of the notification mentioned above, He find following main requirements: • Services provided by way of pure labor contracts • Pertaining to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana He would like to submit that in our opinion the Applicant is fulfilling both the conditions for falling under the entry 10 of the Notification No. 12/2017-Central Tax (rate) dated 28th June, 2017. Additional Submission :- The applicant has submitted Advance Ruling of some cases in regarding to this case along with the agreement copy between M/s buildlayer construction and M/s BCM builders LLP. C. QUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT: Question 1: Whether the entry number 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 is applicable on the services of "Pure Labor" provided by the applicant? ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....#39;t change also when the contractor awards either wholly or partially the work to the subcontractor the work to be performed by the contractor as well as subcontractor remains same and identical to what is specify in the contract between the main contractor and the employer. 5. From Above discussion Prima Facie, it appears that Sub-contract made by contractor does not change the basic nature of nature of original contract with the employer therefore it appears that exemption available by way of above notification of intra-state supply of services under PMAY should be available to sub-contractor i.e. M/s Build Layer Constructions. 6. Moreover, in the Advance Ruling No. RAJ/AAR/2019-20/28 dated 18.12.2019, the AAR Rajasthan has pronounced in similar and identical matter that "The Services provided by way of pure labour contract supplied by the applicant for the construction of flats under Pradhan Mantri Awas Yojana (PMAY) is covered under Entry 10 of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended). E. PERSONAL HEARING: In the matter, personal hearing was granted to the applicant on 30.04.2025. Mr. Ranjan Mehta (Adv.) Authorized ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana. Nil Nil From the above, we found that the pure labour contract services has been exempted from levy of duty vide entry No. 10 of Notification no. 12/2017-Central Tax (Rate) dated 28.06.2017 (as amended). While going through the above entry of the notification, it is clearly stipulates that whosoever is supplying the pure labour contract services for the construction of a civil structure or any other original works under Pradhan Mantri Awas Yojana is exempted from GST. 6) As per the above entry of the notification we found the following main requirements to get the benefit of the above notificaition :- (a) Services provided by way of pure labor contracts. (b) Applicable only to the beneficiary-led individual house construction or enhancement under the Housing for All (Urban) Mission or Pradhan Mantri Awas Yojana. 7) On going through the submission of the taxpayer, we found that the taxpayer is entered in a sub-contract with M/s B.C.M. BUILDERS LLP for providing labour service. On going through the agreement at poin....