Works Contract — Applicant has put the following question for advance ruling in their application:-
“Whether the Contract with Railtel Corporation of India ltd. will fall under the Notification 24/2017-Central Tax (Rate) Sr.No.3(iv)-Construction Service or Original Work to Government Authority, and the rate of tax applicable be 12%?"

the applicant has been awarded a contract for excavation of trenches and laying of Optical Fibre Cables(OFC) through ducts, testing, commissioning of OFC and maintenance in the 01(one) Block(Nakhatrana) of Kachchh District of Gujarat State.

Held that—
the work carried out by the applicant for M/s. Railtel Corporation of India ltd. is not a function entrusted by the Central Government, State Government, Union Territory or a local authority. In view of the above, M/s. Railtel Corporation of India ltd. does not fall under the category of ‘Government Entity’.
it cannot be construed that the optical fiber cables laid underground are meant predominantly for use other than for commerce, industry, or any other business or profession.

we come to the conclusion that the work done by the applicant under the contract with M/s. Railtel Corporation of India ltd. does not fall under the Notification No.24/2017-Central Tax (Rate) Sr. No.3(vi)-Construction Service of Original Work to Government Authority.—Hari Engineers & Contractors, In Re… [2020] 24 TAXLOK.COM 052 (AAR-Gujarat)