Classification of service- The present application has been filed by the applicant seeking an advance ruling in respect of the following questions.-

1. In view of the description of the work order of the Central Railway Department carried out by the tax payer, whether the Notification No. 31/2017-C.T. (Rate) dated 13.10.2017, in respect of composite supply of works contract the GST Rate @ 5% i.e. 2.50% CGST, 2.50% SGST as per sub clause (Vii) of the clause 119 of Section 2 of the CGST Act 2017 is applicable to the Tax Payer.?

2. What will be the GST Rate applicable to the tax payer as per attached work order?

In the subject case there is a supply of both, goods as well as services and therefore we have no hesitation in holding that the subject activity is a composite supply. Further, by way of fabrication, providing steel support, rock bolting, reinforcement, fixing of chain link, cement concreting, etc. there is a transfer of property like steel etc. Thus, we find that the impugned activity is a Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017.

The Central railway Department, which has given the impugned work to the applicant, can be termed as Central Government.

Held that- The applicant is supplying 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 value of the works contract) and such supply is being provided to the Central Government, i.e. Central railways. Therefore, the impugned supply of the applicant is covered under the provisions of Sr. No. 3 (vii) of Notification No. 11/2017 - CTR dated 20.06.2017 as amended from time to time.

 The GST rate applicable to the applicant is 5% (2.5% each of CGST and SGST) or 5% IGST.