Gst on sub contract works

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2018 I am a government contractor. i am receiving 50.00 lakhs during one year towards government contract works. I am giving works on sub contract to one sub contractor for Rs. 30.00 lakhs. He is purely doing labour works for me. No material is involved in his work. Is he liable to pay tax under GST? Can the experts clarify please?

Expert : Anonymous

Expert : Anonymous (Expert)

01 March 2018 Yes even though he is not providing any works contract service, he is providing supply of pure labour services. Hence he is liable to pay GST

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2018 Labour works not exempted from gst?

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Expert : Anonymous

Expert : Anonymous (Expert)

02 March 2018 Yes... The Sub Contractor will be liable under GST. Also the threshold limit is exceeding 20lakhs then he ll register under GST...