Shanti Prime Publication Pvt. Ltd.
Classification of service — The Applicant is a supplier of services as per work order issued for execution by the Railways. From examination of the LOA and the annexed Schedules it is clear that the work to be executed involves repair, maintenance and fitting out of immovable property, namely, Railway Tracks, and also transfer of property in goods in course thereof. It is, therefore, a "Composite Supply" of labour and goods in the nature of Works Contract, as defined under Section 2 (119) of the GST Act, and is, therefore, classifiable under (ii) of column 3 [Description of Service] of Heading 9954 (Construction services) of column 2 under Serial No 3 of column 1 of the Table in Notification No. 11/2017-CT (Rate) dated 28/06/2017 under the CGST Act, 2017 (1135-FT dated 28/06/2017 under the WBGST Act, 2017) - hereinafter collectively called Rate Notification. The Annexure: Scheme of Classification of Services appended with the said Notification No. further classifies Heading 9954 under Section 5 "Construction Services". Group 99542 under Heading 9954 classifies "General Construction of civil engineering works" and Sub-group 995421 classifies "General Construction services of highways, streets, roads, railways and airfield runways, bridges and tunnels". Sub-Group 995429 classifies "Services involving repair, alterations, additions, replacements, renovations, maintenance or remodeling of the constructions covered above. Authority for Advance Ruling West Bengal held that:—Applicant supplies works contract service, as defined under Section 2 (119) of the GST Act, of maintaining existing railway tracks, which is taxable @ 18% under serial no. 3(ii) of Notification No. 11/2017-CT (Rate) dated 28/06/2017 under the CGST Act, 2017 (1135-FT dated 28/06/2017 under the WBGST Act, 2017). The appropriate SAC (Service Code Tariff) is as follows: Heading 9954, Group 99542, Sub-group 995429. 51 TUD 112 (AAR-WB)