2018 (5) TMI 370 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2018 (12) G. S. T. L. 392 (A. A. R. – GST), [2018] 2 GSTL (AAR) 62 (AAR) – Works contract service – maintaining railway track – rate of tax – N/N. 12/2017-CT (Rate) dated 28/06/2017 under the CGST Act, 2017 (1136-FT dated 28/06/2017 under the WBGST Act, 2017) – Held that: – the condition for being exempted from GST under this amendment requires the composite supply (wherein the value of the goods supplied is not more than 25% of the total value of the supply) to be provided, inter alia, to Central Government by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution.
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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.
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Ruling:- The Applicant supplies wo
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admissible on this question under Section 97(1) (a) of the CGST / WBGST Act, 2017 (hereinafter referred to as the GST Act ). The officer concerned raises no objection. The Application is admitted. 2. During the course of Personal Hearing, on 21/03/2018, the Applicant submitted a photocopy of Letter of Acceptance, for the period 01.10.2017 to 30.09.2018, (hereinafter referred to as LOA ) No.: T/Misc.P.Way (Zonal)/PWI-West/SRC/2017(e- 30) dated 04/01/2018 issued from the Office of the DRM (Engg), Kharagpur, along with the Schedules annexed thereto. The questions raised by the Applicant will be discussed in relation to the above document. 3. The Application, in Annexure C refers to a hyperlink: www.exportgenius.in/gst-taxrates/ railway-track-maintenance-work which leads to information on the GST on HSN Code 86040000 – Railway or Tramway Maintenance or Service Vehicles Whether Or Not Self-propelled (for Example Workshops Cranes Ballast Tampers Track-liners Testing Coaches and Track Inspect
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ication. The Annexure: Scheme of Classification of Services appended with the said Notification No. further classifies Heading 9954 under Section 5 Construction Services . Group 99542 under Heading 9954 classifies General Construction of civil engineering works and Sub-group 995421 classifies General Construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels . Sub-Group 995429 classifies Services involving repair, alterations, additions, replacements, renovations, maintenance or remodeling of the constructions covered above . After a thorough perusal of the LOA it is seen that the Services rendered by the Applicant are to be classified under SAC (Service Code Tariff) Heading 9954, Group 99542, Sub-group 995429. 4. The Rate Notification, along with its amendments on various dates, deals with the Tariff rate of tax as well as the effective rate of tax at reduced rates subject to specific laid down conditions. None of the amendments, whereby the
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Personal Hearing the Applicant has referred to an exemption granted under Notification No. 12/2017-CT (Rate) dated 28/06/2017 under the CGST Act, 2017 (1136-FT dated 28/06/2017 under the WBGST Act, 2017) (hereinafter referred to as the Exemption Notification ), and as amended on 25.01.2018. This argument is not present in the original application of Advance Ruling submitted on 07.02.2018. However, it is seen that the condition for being exempted from GST under this amendment requires the composite supply (wherein the value of the goods supplied is not more than 25% of the total value of the supply) to be provided, inter alia, to Central Government by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Once again, the conditions laid down are not applicable to the instant case. 6. The works contract service of maintaining railway
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