Classification of service— In the instant case, the applicant is seeking  advance ruling as to- What is the rate of tax for the works contract like supply of goods or services or both pertaining to Railways based on order received from M/s. RITES Ltd. (on behalf of SECL) for construction of railway infrastructure facilities for the proposed feeder line of East West Rail Corridor within the leasehold boundary of project for coal evacuation through Rail at Gevra Opencast of Gevera Area of SECL; Whether the work awarded can be covered under the definition of Works Contract as defined u/s 2(119) of the CGST Act, 2017; Whether the rate of GST for the construction of rail infrastructure facilities will be under SI. No. 3(v)(a) OR Sl. No.3(xii) Notification No 11/2017-CT(Rate) dated 28/06/2017 as amended by various notifications as applicable and the said work can be considered as works contract pertaining to railways including monorail and metro?

Held that— 

i. For the proposed feeder line of East West Rail Corridor within the leasehold boundary of project for coal evacuation through Rail at Gevra Opencast of Gevera Area of SECL the rate of tax would be 12% [CGST @6% + CGGST @6%) as stipulated under entry No.3 (v) (a) of Notification No. 11/2017 amended vide Notification No.1/2018- Central Tax(rate) dated 25lh January 2018, effective from 25.01.2018, provided the works undertaken by the applicant sa'isfies the definition of 'Works Contract' as defined in clause (119) of Section 2 of the Central Goods and Service Tax Act, 2017.

ii. The aforesaid work awarded to the applicant gets covered under the definition of Works Contract as defined u/s 2(119) of the CGST Act, 2017, provided the conditions stipulated under the definition of “Works contract”, as defined in clause (119) of Section 2 of the Central Goods and Service Tax Act, 2017 and as discussed herein above,gets established.

iii. The rate of GST for the construction of rail infrastructure facilities under Sl. no. 3(v)(a) of Notification No. 11/2017 amended vide Notification No. 1/2018- Central Tax(rate) dated 25lh January 2018, effective from 25.01.2018, would be 12% [CGST @6% + CGGST @6%]. provided the works undertaken bysthe applicant satisfies the definition of 'Works Contract' as defined in clause(119) of section 2 of the Central Goods and Service Tax Act, 2017. Except for the above, n other cases for the said work the rate of tax would be 18% [CGST @9% + CGGST @9%] as stipulated under SI. No.3 (xii) of Notification No 11/2017-CT (Rate) dated 28.06.2017 as amended by various notifications as applicable,

iv. Yes, the aforesaid work as is forthcoming from the said letter of acceptance dated 25.10.2021 furnished by the applicant issued by RITES can be considered as pertaining to railways. As regards, it being "Works contract", as already held, the conditions stipulated therein under the definition of "Works contract", as defined in clause (119) of Section 2 of the Central Goods and Service Tax Act, 2017 of the property must get established.