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Corporate News *  The GSTN has issued an Advisory dated 21.04.2026 about the introduction of an Offline Tool for the Invoice Management System (IMS)  *  CBIC extends due dates for filing of FORM GSTR 3B  for the month of April 2026 *  Interest cannot be imposed in adjudication order, if not demanded/quantified in show cause notice : Allahabad HC *  Wheelchairs with toileting facility eligible for exemption: CESTAT affirms customs duty exemption to importer *  Industries urge GST council to allow inverted duty refunds on input services *  Tamil Nadu GST dept introduced virtual hearing facility for GST appeals under under section 107 of the TNGST act: detailed guidelines  *  CIC urges authorities to implement GST evasion complaint tracking system *  Even if the assessee opts "NO" for personal hearing in form DRC-06 ,The mandatory requirement under section 75(4) to grant opportunity of hearing cannot be waived:Gujarat High Court  *  Glufosinate imports curbs imposed by govt *  Government extends Re-import period for exported cut & polished diamonds *  CIC flags lack of tracking system for tax evasion complaints,urges GST authorities to improve transparency *  No Custodial Interrogation needed in GST fraud case based on documentary evidence already in Department's Possession : Chattisgarh HC *  Orders under section cannot be sustained if passed without considering the taxpayer's objections and without granting a personal hearing:Gujarat High Court *  Mere cancellation of supplier's registration cannot,by itself,justify denial of ITC or cancellation of the recipient's registration:Bombay High Court *  High Court sets aside GST notice citing factual errors and natural justice violations *  Provisional Bank Attachment under Section. 110 of Customs Act Unsustainable Beyond Statutory period without Extension order: Bombay HC orders to defreeze accounts *  Post Clearance MRP Alteration by Distributor Does not attract Differential Customs Duty: CESTAT *  DGFT Expands scope of 'Screws' classification under RoDTEP Scheme  *  E-way bills surze to all time high of 140.6 million in March *  GST Exemption Allowed on Pure Labour Services for Standalone Houses: AAR  *  GST Payable Only on Margin in Second-Hand Car Sales, Subject to Strict Conditions and No ITC Claim: AAR *  DGFT rolls out procedure for allocation of calcined coke *  GST portal update : Pre-deposit amount now editable in Appeals *  J&K HC declared TMT scrap a 'Specified Good' eligibile for GST refunds under Support Scheme  *  Pigmy agents are employees of banks; no GST can be levied on commission  paid to them : Karnataka HC *  DGFT Revises HS Code Description for Screws Under RoDTEP *  GST Registration Cancellation Invalid Without Proper Service of Notice: Allahabad High Court. *  Bengaluru CGST | GST Backlog Appeals Deadline Fixed at June 30, 2026 *  No Time Bar on Refund of Service Tax for Services Not Rendered: CESTAT  Remands Indiabulls Case for Unjust Enrichment Check. *  Supreme Court Holds Renewable Energy Incentive Must Benefit Generators, Not Be Adjusted in Tariff
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Exemption for construction industry

Exemption for construction industry

In today’s GST update, we will discuss the changes made in the exemption list proposed in GST keeping the focus on construction industry. These exemptions are listed at serial number 66 and 67 in the list of Service tax exemptions to be continued in GST as decided by GST council. The above serial numbers are re-produced for sake of convenience of our readers:-
1. Services provided by way of pure labour contracts of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of a civil structure or any other original works pertaining to the Beneficiary-led individual house construction / enhancement under the Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY);
2. 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;

It must be noted that current service tax regime, the exemptions are given for the above-mentioned services in respect of construction, erection, commissioning, or installation of original works. The new term added in these entries is the pure labour contract. That means such services will be exempted only if they are provided as pure labour contract. No material should have been added in the value of such contracts.

This has created a lot of problems. Supposing a work contract service to a single residential unit was exempt from the levy of service tax by serial number of 14(b) of Mega exemption notification number 25/2012 and will be taxable now. If we intend to avail the exemption then contractor have to revise our agreement and make it a pure labour contractor. This type of condition has raised question that how this is possible in the real world where no such separate contracts for material and labour exists. The prevailing practice is that the contractor provides the material and labour together for the supply of such services. It is practically impossible to imagine a situation where a contractor has to only provide labour and a separate person will have to provide the requisite material to avail exemption on this ground.

This reasoning and logic behind this amendment is also beyond understanding and this will need a due consideration on the part of government to realize its far going effects.
The author has tried to logic behind such shift by the Government and can only understand that since the credit of inputs is also allowed under works contract service. And most of the material used by works contract service provider like Cement, paints, builder’s ware etc. are covered under 28% category, hence the service provider should take the credit and pay tax to make a chain.

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