2021 (1) TMI 425 - AUTHORITY FOR ADVANCE RULING, GUJARAT - GST

Head Note / Extract:
Rate of tax - applicability of clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017 - Works Contract - construction, erection, commissioning or installation of original works pertaining to railways - rate of GST@ 12% or 18%? - HELD THAT:- The applicant has been awarded the Contract by M/s Rites Limited, which is a Public Sector Undertaking. Said contract was awarded for execution of works of laying of track as per layout plan, pavement along the track, construction of Admin building, Warehouse, Electrical works and Fire-fighting works etc. at Khodiyar, Gandhinagar, Gujarat. Further, contract is involving both supply of goods and services and is a composite supply in the nature of Works Contract Supply - The work awarded to the applicant comprises of laying of track as per layout plan, pavement along the track, construction of Admin building, Warehouse, Electrical works and Fire-fighting works etc. at Khodiyar, Gandhinagar, Gujarat. These works are in the nature of new works to be executed. These also involve construction of “original works”. As such, same are covered under the definition of ‘original work’, as defined inclause (zs) of the Notification No.12/2017-Central Tax (Rates) dated 28.06.2017. The Applicant has produced no evidence that the work was allotted to M/s RITES Ltd was pertaining to railways as defined at Section 2(31) of the Railway Act, 1989. There is also no evidence on record whether the work has been awarded in respect of “Government railway” or “Non-Governmental railway”. Although, the applicant has sought to infer that the said work was in respect of railways owned by Ministry of Railways, but he has not provided any supporting evidence in the form of agreement between M/s RITES Ltd and Ministry of Railways to establish the same. Therefore, in absence of any such conclusive proof that the work pertains to railways, the third condition is not satisfied. The contract work is not covered under clause no. 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017, as amended by Notification No. 20/2017-Central Tax (Rate) dated 22.08.2017.