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Works Contract by way of construction, erection, commissioning or installation of original works pertaining to railways is not entitled for reduce rate of GST@12% instead of 18%.

Classification of service— In the instant case, the applicant has been awarded the work of ‘Construction of Pavement, Track Work, Warehouse, Admin Building, E&M works and other miscellaneous works at Khodiyar, Gandhinagar, Gujarat awarded by M/s RITES Ltd. The applicant has sought advance ruling in respect of following question: Whether the said work can be covered under clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017 i.e. Works Contract by way of construction, erection, commissioning or installation of original works pertaining to railways so as the entitle it for charging rate of GST@ 12% instead of 18%? The main issue is whether this is a contract pertaining to Railways. We find that in the instant case, the work relating to construction has been awarded by an entity, viz. M/s RITES Ltd. However, the applicant has submitted no evidence in support of the claim that work awarded to them pertains to Railways. Held that— we hold that the contract work is not covered under clause no. 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017, as amended by Notification No. 20/2017-Central Tax (Rate) dated 22.08.2017.