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Since the major part of the work order, i.e. more than 75% is “Earth Work”, the said work order qualifies for the benefit of concessional rate @5%

Classification of service— In the instant case, the applicant is engaged in the business of providing composite supply of work contract including sale of goods and also indulged in the mining of various stones & minerals and alike in the state of Haryana since 2011. The applicant has applied for seeking advance ruling for a work Contract allotted by Haryana State Industrial & Infrastructure Development Corporation Ltd. The work allotted is is in the nature of earthwork supplied to a government entity and the same was entrusted by state government to HSIIDC and the applicant is a contractor providing composite supply of work contract as defined in clause 119 of Sec-2 of the CGST Act,2017, involving pre dominantly earth work (i.e. constituting more than 75% of the value of work in contract) provided to Central Government, State Government, Union Territory, Local authority, a government authority or a Government Entity. The question on which advance ruling has been sought is- Whether the Serial No. 3 of Notification No. 31/2017-Central Tax (Rate) dated 13th October,2017 issued under the GST Act, being Composite supply of work contract as defined in clause 119 of Sec-2 of the CGST Act,2017, involving pre dominantly earth work i.e. constituting more than 75% of the value of work in contract) provided to Central Government, State Government, Union Territory, Local authority, a government authority or a Government Entity having GST rate of 5% applicable to the applicant. Held that—since the major part of the work order, i.e. more than 75% is “Earth Work”, we find that the said work order qualifies for the benefit of Serial No. 3 of Notification 31/2017 dated 13.10.2017 issued under GST Act, being composite supply of works contract as defined in clause 119 of sec-2 of the CGST Act,2017, involving pre dominantly earth work i.e. constituting more than 75% of the value of work in contract provided to Central Government, State Government, Union Territory, Local authority, a government authority or a Government Entity. Therefore, GST will be applicable at the rate of 5%