Rate of tax (service)— In the instant case, the applicant seeking advance ruling as to-

What should be the rate of tax on their work, will it be 12% or 18%? ; What is the current tax rate of tax on their work, Is there any change on rote of Tax since 1.1.2022 or till date.

The term “pertaining to Railways”, as appearing at S.no. 3 (v)(a) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended, vide Notification 01/2018 Central Tax (Rate) dated 25.01.2018 is more expansive and includes other establishments other than Indian Railways. Needless to mention here that there is no stipulation in the said entry claimed for exemption supra, that this work must be executed to the Railways but it is sufficient that it must be “pertaining to Railways”, meaning therein that the supplier and the recipient is immaterial. Thus, we are of the considered opinion that the work intended to be undertaken by the applicant for RITES Limited pertains to railways and accordingly this pre-requisite stands fulfilled.

Held that— 

i. The benefit of entry at Si.no. 3 (v)(a) of Notification No. 11/2017 Central Tax(Rate) dated 28.06.2017 as amended, vide Notification 01/2018 Central Tax(Rate) dated 25.01.2018 and various other amendments from time to time, lastly amended vide Notification no. 22/2021-Central Tax (Rate) dated 31.12.2021 would be eligible to M/s Agrawal buildcon, C/o Agrawal Traders, Main Road, Korba, Chhattisgarh, 495677 [GSTIN-22ASSPA1067D1Z7], the applicant, provided that the works undertaken by them qualifies as “Composite supply” as stipulated under Section 2 (30) of CGST Act, 2017 as also the said work undertaken satisfies the condition of being 'Works Contract' as per Section 2 (119) of the Act, and if so the applicable rate of GST would be @ 12% effective from 25.01.2018. A cases other than above the said work would attract GST @ 18% under the residual entry at Sr. no. 3 (xii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended. This authority on the basis of records furnished and available on record, is not in a position to conclusively hold that the works, as is forthcoming from the “letter of acceptance” issued by RITES LIMITED supra, intended to be undertaken by the applicant qualifies being treated as 'Composite supply' as per Section 2 (30) of CGST Act, 2017 or are 'Works Contract' as defined under Section 2 (119) of CGST Act, 2017, as discussed herein above.

ii. There is no change in the rate of GST with effect from 1.1.2022 on such composite supply of works contracts as defined in Section 2 (119) of the Central Goods and Services Tax Act, 2017 supplied by way of construction, erection, commissioning, or installation of original works pertaining to railways.