TMI Blog2021 (8) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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. - KAR ADRG 40/2021 - - - Dated:- 30-7-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e stations, PWI Offices, RPF Barricades, etc., and in welfare buildings like Railway Hospitals, Colonies, etc. 5.2 The applicant states that the South Western Railway, Bangalore Division is interpreting the consolidated Notification No. 11/2017 as below:- (a) Considering all service buildings as business/commerce establishments and rate charged is 18% (even for original works), (b) Works related to all welfare buildings (i.e. only colonies) are charged is 12% 5.3 The applicant submitted that as per the Notification No. 11/2017- Central Tax (Rate) - serial no. 3(v), the GST rate applicable is 12% if composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 is supplied by way of construction, erection, commissioning of original works pertaining to Railways (including monorail and metro). 5.4 The applicant has stated that as per Rule 2A of the Service Tax Rules 2006, Original Works has been defined as,- (a) all new constructions (b) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable (c) Erection, commissioning or i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 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 construction, erection, commissioning, or installation of original works pertaining to, - (a) Railways, .... (b) ... . The rate of tax applicable is 6% under CGST. 10.2 On examination of the above entry, it is clear that the above entry is related to works contract services supplied to Railways which is construction or erection or commissioning or installation of original works. The entire dispute is regarding what are original works . 10.3 The term original works has been defined in clause (zs) of para 2 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 as under:- (zs) original works means - all new constructions; (i) All types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (ii) Erection, commissioning or installation of plant, machinery or equipment or structures, whether prefabricated or otherwise; Though this definition is given in relation to the Notification No. 12/2017-Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concreting, grouting, plastering, pointing, flooring/dado work, roof leakages, etc. (2) carpentry works - wood work, doors and windows, cupboards, frames, shutters fitting and fastenings, rafters, reapers, wooden furnitures, roof sheeting etc. 13. To a question whether all repairs made to buildings constitute original works , the answer is no . It is only those services executed to make an unusable building usable again is covered under original works . 14. Even those services which are provided in relation to the residential accommodation of staff, the matter is examined and found as under: The entry 3(vi) reads as under:- (vi) Services provided to the Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of - (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or(ii ..... X X X X Extracts X X X X X X X X Extracts X X X X
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