Home Case Index All Cases GST GST + AAR GST - 2021 (8) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 353 - AAR - GSTRate of GST - Composite supply or mixed supply - works contract services doing original works with South Western Railways - services of repairs, maintenance, renovation and alterations of residential complex meant for use of the Railway employees - HELD THAT:- The Railways Department is a Central Government Department and hence it is clear that the services provided to them if it is for a purpose other than for business, then the same would be covered under entry 3(vi). Since the Railways is undertaking the transportation services of goods and passenger, the services provided cannot be covered under entry 3(vi)(a). However, the services of repairs, maintenance, renovation and alterations of residential complex meant for use of the Railway employees are covered under entry 3(vi) of the Notification and hence eligible for tax at 6% CGST. Rate of tax - HELD THAT:- On the question whether this contract amounts to a composite supply or mixed supply or a bunch of separate supplies, it is seen that the same cannot be a composite supply of works contracts as there is no principal supply and the works are not naturally bundled. It cannot be a mixed supply also because the valuations of each of the supply of works are valued separately and they would amount to separate contracts. Hence, there is no common price for all the contracts. Hence it can be safely decided that each of the works mentioned in a schedule is a separate contract in itself and this is bolstered by the fact that the works are not in the same place and also are different in nature. Thus, new constructions involved in the contract are liable to tax at 12% as per entry no.3(v) of N/N. 11/2017 -Central Tax (Rate) dated 28.06.2017 as amended by N/N. 20/2017 - Central Tax (Rate) dated 22.08.2017 - services of repairs, maintenance, renovation and alterations of residential complex meant for use of the Railway employees are covered under entry 3(vi) of the Notification and hence eligible for tax at 12% - Other repair works of old construction involved in the contract are liable to tax at 18% as per entry no. 3 (xii) of Notification No. 11/2017 -Central Tax (Rate) dated 28.06.2017 as amended from time to time.
|