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Levy of GST — Authority for Advance Ruling — Work-Contract – The applicant is mainly engaged in industrial factory, project-building and other infrastructure construction work within and outside the country. The applicant company was awarded the contract for manufacturing the factory by the Madhepura Electric Locomotive Pvt. Ltd., Madhepura. The applicant submitted that Sarvashri Madhepura Electric Locomotive Pvt. Ltd., Madhepura Sarvashri Elshtam Manufacturing India Pvt. Ltd. is a joint venture of Indian Railways and has been set up to manufacture and maintain electric locomotives as SPV. The applicant sought advance ruling as to what will be the rate of GST under GST Act on the work contract awarded by Madhepura to the applicant company for civil construction, eg, construction of factory, construction of road and other structures etc.
Held that:- The Hon’ble Authority for Advance Ruling held that the service transaction carried out by the applicant under the work contract is a work-contract transaction under Section 2 (119) of the Goods and Services Tax Act, 2017 but it is not related to the Railways at all. Consequently, the provisions of serial number 3 (v) of Notification No. 20 / 2017- (Tax) will not be applicable to this work-contract transaction and SGST @ 9% and CGST @ 9% will be liable on this service transaction.Tata Projects Limited  3 TAXLOK.COM 73 (AAR-BIHAR)