In Re : Sreepati Ranjan Gope & Sons
GST
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)
AUTHORITY FOR ADVANCE RULING – WEST BENGAL – AAR
Dated:- 3-5-2018
Case Number 06 of 2018
GST
Vishwanath Member And Parthasarathi Dey Member
Applicant's representative heard Sri Anup Kumar Gope, Partner
ORDER
1. The Applicant, stated to be an enlisted contractor engaged by the Railways for maintenance work of railway tracks, wants a ruling on the Classification and Rate of Tax when maintenance of railways tracks is done by them by providing contractor's labour only in cases where the Railways supply materials free of cost and when maintenance of railways tracks is done by them by providing, both, contractor's material and labour.
Advance Ruling is admissible on this question under Section 97(1) (a) of the CGST / WBGST Act, 2017 (hereinafter referred to as “the GST Act”).
The officer con
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s 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, classifiable under (ii) of column 3 [Description of Service] of Heading 9954 (Construction services) of column 2 under Serial No 3 of column 1 of the Table in 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) – hereinafter collectively called Rate Notification. The Annexure: Scheme of Classification of Services appended with the said Notification No. further classifies Heading 9954
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case.
During Personal Hearing the 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 amendment for effective rate of GST at reduced rates is not applicable in the instant case.
5. During Personal Hearing the Applicant has referred to an exemption granted under Notification No. 12/2017-CT (Rate) dated 28/06/2
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