AAR Rajasthan denied GST Exemption for PMAY Sub-Contracted Labor

In re Build Layer Constructions (GST AAR Rajasthan)

The Authority for Advance Ruling (AAR), Rajasthan, has ruled that M/s Build Layer Constructions is not eligible for GST exemption on its “pure labor” construction services provided as a sub-contractor for a project under the Pradhan Mantri Awas Yojana (PMAY). The AAR’s decision hinged on the applicant’s involvement in supplying materials in addition to labor, and a failure to conclusively prove the main contractor’s direct engagement in the PMAY scheme.

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