TMI Blog2023 (1) TMI 1164X X X X Extracts X X X X X X X X Extracts X X X X ..... on the same - works contract services supplied by the Applicant to Indian Railways such as construction of Rail under bridge and construction of tunnels are covered under entry No. 3(xii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and is exigible to GST at 18%. Works contract services involving predominantly earth work (that is, constituting more than 75per cent, of the value of the works contract) executed to Indian Railways (Central Government) by the Applicant is exigible to GST at 12% if the Applicant is providing the services either as a main contractor or as a sub-contractor to main contractor. Supply of ballast to railways is exigible to GST at 5% (HSN 2517) as per entry No. 126 of Schedule I of Notificatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struction of Tunnels for Railways c) Supply and stacking of ballast d) Execution of Earth Works Contract e) Subcontract works for the above mentioned contract works 4. Admissibility of the application: The question is about the determination of the liability to pay tax on any goods or services or both and hence is admissible under Section 97(2) (e) of the CGST Act 2017. 5. BRIEF FACTS OF THE CASE: The applicant furnishes some facts relevant to the issue: 5.1 The applicant has stated that they are engaged in executing works contract to Indian Railways such as construction of Rail under bridge works, construction of tunnels and supplying and stacking of ballast, earth work and also sub contract of all the mentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of Rail under bridge, construction of tunnels, execution of Earth Works Contract, supply and stacking of ballast and sub-contract of the above-mentioned contract works and wants to know the rate of GST on the same. In this regard we invite reference to entry No. 3 of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, which was amended vide Notification No. 3/2022-Central Tax (Rate) dated 13.07.2022 as below:- (A) in the Table, - (I) against serial number 3, in column (3), - (a) items (Ui), (iv), (v), (va), (vi) and (ix) and the corresponding entries relating thereto in columns (4) and (5) shall be omitted; (b) against items (vii) and (x), for the entry in column (4), the entry 6 shall be substituted; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s which is one of the departments of Central Government, then the same is covered under entry No. 3(vii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 and is exigible to GST at 12% (SGST @ 6% and CGST @ 6%). The same is reproduced below: SI.No. Chapter, Section or Heading Description of Service Rate (percent) Condition 3 Heading 9954 (Construction services (vii) Composite supply of works contract as defined in clause (119)of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75per cent, of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AEN / Udupi. That is the applicant is supplying ballast to the Konkan Railway Corporation Limited and the supply of ballast to railways is exigible to GST at 5% (CGST @ 2.5% and SGST @2.5%) (HSN 2517) as per entry No. 126 of Schedule I of Notification No. 1/2017-Central Tax (Rate), dated: 28.06.2017 and the same is reproduced below: Schedule I-2.5% SI.No. Chapter / Heading / Sub-heading / Tariff item Description of Goods 126 2517 Pebbles, gravel, broken or crushed stone, of a kind commonly used for concrete aggregates, for road metalling or for railway or other ballast, shingle and flint, whether or not heat-treated; ..... X X X X Extracts X X X X X X X X Extracts X X X X
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