Supplier of labour can’t be treated as Pure Agent, labour supply services taxable at 18%

GST: according to this latest update on GST applicants engaged in service of supply of labour cannot be categorized as a ‘pure agent’. This is because the supplier is supplying labor service which is covered under heading no. 9985. Along with this, the service provided by the applicant will be at the rate of 18 percent as GST (CGST 9 percent + 9 percent SGST) in terms of Sl. No. 23 of Notification No. 11/2017-CT (Rate), dated 28-6-2017.