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Rate of tax 12% will be applicable on the contract pertaining to metro rail project provided the works contracted and undertaken by them satisfies the definition of ‘Works Contract’

Rate of tax (service)— In the case at hand, the applicant is entrusted with certain works of design, manufacture, installation and commissioning of the Telecommunication systems including signaling system by Siemens who has been awarded the entire work relating to signaling and Telecommunication under CMRL project Phase-1 and from the preceding paragraphs it is seen that the works are composite supply of original work pertaining to railways and the only leg of the entry No. 3(v) of the Notification which has not been established is whether the works satisfies the definition of ‘Works Contract’ under Section 2 (119) of the GST Act for which sufficient documentary proof is not furnished before us. The applicant has expressed his inability to furnish the necessary documentation and have opined that the documents furnished is sufficient for pronouncing the ruling. Therefore, considering all the submissions and that the application is pending before this authority for long, Held that— We find it appropriate to hold that the benefit of the entry at Sl.No. 3 (v) will be applicable to the applicant subject to the works undertaken by them being ‘Works Contract’ as per Section 2 (119) of the Act and the applicable GST is @, 12% effective from 25.01.2018.