TMI Blog2018 (5) TMI 370X X X X Extracts X X X X X X X X Extracts X X X X ..... any function entrusted to a Municipality under article 243W of the Constitution. The works contract service of maintaining railway track as per the above LOA is, therefore, taxable @ 18% under the Serial no. 3 (ii) of the Rate Notification. Ruling:- The Applicant supplies works contract service, as defined under Section 2 (119) of the GST Act, of maintaining existing railway tracks, which is taxable @ 18% under serial no. 3(ii) of Notification No. 11/2017-CT (Rate) dated 28/06/2017 under the CGST Act, 2017 (1135-FT dated 28/06/2017 under the WBGST Act, 2017). The appropriate SAC (Service Code Tariff) is as follows: Heading 9954, Group 99542, Sub-group 995429. - Case Number 06 of 2018 - - - Dated:- 3-5-2018 - Vishwanath Member And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hops Cranes Ballast Tampers Track-liners Testing Coaches and Track Inspection Vehicles. Since the Applicant is neither manufacturing nor supplying any such vehicle, the information available on the hyperlink is not relevant to the Applicant. The Applicant is a supplier of services as per work order issued for execution by the Railways. From examination of the LOA and the annexed Schedules it is clear that the work to be executed involves repair, maintenance and fitting out of immovable property, namely, Railway Tracks, and also transfer of property in goods in course thereof. It is, therefore, a Composite Supply of labour and goods in the nature of Works Contract, as defined under Section 2 (119) of the GST Act, and is, therefore, clas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Applicant has submitted a screenshot of GST rate of 5% for construction services for composite supply of works contracts involving predominantly earth work (that is, constituting more that 75% of the value of services provided, inter alia, to Central Government. It appears that the Applicant is referring to amendment dated 13.10.2017 of the above mentioned Rate Notification. The LOA provides a detailed schedule of the nature of the work involved. It involves cleaning, surface preparation and painting of the rails, welding of joints, fabrication and fixing of guard rails, dressing and boxing of ballast, piling of Bullah, and other maintenance related work, only a minor fraction of which can be described as earth work. Hence, this amendm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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