working version of create merge requests with labels

app/controllers/projects/issues_controller.rb

@@ -212,7 +212,7 @@ class Projects::IssuesController < Projects::ApplicationController
   end
 
   def create_merge_request
-    result = ::MergeRequests::CreateFromIssueService.new(project, current_user, issue_iid: issue.iid).execute
+    result = ::MergeRequests::CreateFromIssueService.new(project, current_user, merge_request_params).execute
 
     if result[:status] == :success
       render json: MergeRequestCreateSerializer.new.represent(result[:merge_request])
@@ -287,4 +287,14 @@ class Projects::IssuesController < Projects::ApplicationController
 
     redirect_to new_user_session_path, notice: notice
   end
+
+  private
+
+  def merge_request_params
+    { 
+      issue_iid: issue.iid,
+      label_ids: issue.label_ids,
+      milestone_id: issue.milestone_id
+    }
+  end
 end

app/services/merge_requests/create_from_issue_service.rb

@@ -43,9 +43,7 @@ module MergeRequests
       {
         source_project_id: project.id,
         source_branch: branch_name,
-        target_project_id: project.id,
-        labels: issue.labels,
-        milestone_id: issue.milestone_id
+        target_project_id: project.id
       }
     end