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TMI Blog2019 (10) TMI 1134X X X X Extracts X X X X X X X X Extracts X X X X ..... 017, in FORM GST ARA 01 discharging the fee of Rs. 5,000-00 each under the CGST Act and the KGST Act. 2. The Applicant is a Limited Company and is registered under the Goods and Services Act, 2017. The applicant has sought advance ruling in respect of the following question: a) What is the rate of tax for the sub-contractors who executes the works contract work like supply of goods or services or both pertaining to Railways based on the order received from the main contractor who got the work order directly from Railways. b) Does the rate of tax of 6% as per serial no.3(v) of Notification No. 11/2017- Central Tax dated 28.06.2017 as amended, applicable to sub-contractors or not? c) If the answer to the question no.2 is yes, then from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and charges GST as per the Sl.No.3(v) of Notification No. 11/2017- Central Tax (Rate) dated 28.06.2017 as amended and submits to Railways for payment. e. The applicant states that as there is no clear wording about the applicability of reduced rate of tax to sub-contractors. Hence, clarification is sought for the same. FINDINGS & DISCUSSION: 4. We have considered the submissions made by the applicant in their application for advance ruling as well as the additional submissions made by Sri. Muralidhara, CA, during the personal hearing. We also considered the issues involved on which advance ruling is sought by the applicant and relevant facts. At the outset, we would like to state that the provisions of both the CGST Act and the KGST Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amounts for the two parts are separately shown as under: (a) Supply portion: Rs. 1,00,34,256-00 (b) Installation Portion: Rs. 2,31,66,078-00 Both the values are part of the same contract. The contract is an EPC contract and the parts cannot he executed separately and hence is a single contract involving both supply of goods and supply of services and is a composite supply in the nature of works contract supply. 4.3 Entry No. 3(v) of the Notification No. 11/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 20/2017 - Central Tax (Rate) dated 22.08.2017 reads as under: "Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, supplied by way of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contract pertaining to Railways needs to be examined. 4.7 Regarding the DFCCIL, the following information is available: "Ministry of Railways initiated action to establish a Special Purpose Vehicle for construction, operation and maintenance of the dedicated freight corridors. This led to the establishment of "Dedicated Freight Corridor Corporation of India. Limited (DFCC)", to undertake planning & development, mobilization of financial resources and construction, maintenance and operation of the dedicated freight corridors. DFCC was incorporated as a company under the Companies Act 1956 on 30th October 2006. Mission As the dedicated agency to make the vision into reality, DFCCIL's mission is: * To build a corridor with appropriate t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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