Classification of service— In the instant case, the applicant submits that he was awarded a contract by East Coast Railways, Khurda Road Division, Orissa for execution work for dismantling of existing bridge timber/steel channel sleepers on bridge including removal of all fittings of sleepers and removing footpath, tie bar lacing/angle lacing etc. and fabrication, manufacture and supply of H- beam steel sleepers and installation of the same.
Questions raised for advance ruling are as follows—
(i) Whether dismantling of existing sleeper fixing and/or installation of new (H-Beam Steel sleepers) is amounting to execution of original work and would attract IGST @12% in terms of Notification No. 20/2017-Integrated Tax (Rate) dated 22.08.2017?
(ii) Whether the applicant is eligible for getting the benefit of Notification No. 20/2017-Integrated Tax (Rate) dated 22.08.2017 by paying IGST @ 12% for construction, erection, commission or installation of original works pertaining to Railways?
The issue involved in the case is to decide whether the execution of the work being undertaken by the applicant can be treated as execution of original work so as to attract IGST @12% under Notification No. 20/2017-Integrated Tax (Rate) dated 22.08.2017.
The applicant has been awarded the contract which involves fabrication, manufacture and supply of galvanized H-Beam steel sleepers after dismantling of existing bridge timber/steel channel sleepers on bridge. The applicant doesn’t construct a new bridge nor is the applicant entrusted to lay a new railway track.
Held that— The instant supply is found to be a composite supply of works contract as defined in clause (119) of section 2 of the GST Act but the supply cannot be regarded as composite supply of ‘original work’ as defined in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The instant supply, therefore, shall not be covered under serial number 3(v) of Notification No. 20/2017 Integrated Tax (Rate) dated 22.08.2017, as amended, to attract tax @ 12%.