Nal Neer & Company undergoes contracts individually with various landowners for performing the construction activity for a residential house.
The few contracts are labour contracts and few contracts cum material contracts. What is the GST treatment on such income?
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 are exempted vide N/N 12/2017-CT(R).
It may be noted that only pure labour contract of construction of original works pertaining to a single residential unit is exempted under GST.
It is clear that labour cum material construction contracts are not exempted.