Subcontractor’s Labor Services in PMAY Project is Not 'Pure Labor' Contract: AAR Rules No GST Exemption

The AAR has ruled that a subcontractor's labor services in a PMAY project are "not pure labor contract" and thus, no GST exemption is applicable. The ruling was based on the fact that the subcontractor was also providing materials and machinery. This decision provides clarity on the classification of services and reinforces that a contract must be a pure labor contract to be eligible for the exemption.