Private railway siding qualifies as railway original work and attracts GST at 12% under the rate notification.

Construction of a private railway siding for carriage of coal and oil fuel to a thermal power station was treated as a works contract and as original works under the GST rate notification. The term "railways" was read broadly by reference to the Railways Act, 1989 and the Constitution, so the inclusion of sidings and other railway-purpose works was not defeated merely because the siding was privately owned. The carriage was for industrial and public utility use, not recreation, and therefore did not fall within the recreational-line exclusion. The siding was held taxable at 12% under the relevant notification.

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Issues: Whether construction of a private railway siding for carriage of coal and oil fuel to a thermal power station is an original work pertaining to railways and liable to GST as a composite supply of works contract at 12% under the relevant rate notification.

Analysis: The supply in question was held to be a works contract within the meaning of section 2(119) of the GST Act and to answer the description of original works under the rate notification. The expression "railways" was interpreted with reference to section 2(31) of the Railways Act, 1989 and Article 366(20) of the Constitution of India. The exclusionary element of "public carriage of passengers or goods" was not treated as excluding a siding merely because it was privately owned, since the statutory definition of railways is wide enough to include sidings and other works constructed for railway purposes. The carriage was for industrial and public utility use, not for recreation, and therefore did not fall within the exclusion relating to recreational lines of rails.

Conclusion: The private railway siding was held to pertain to railways, and its construction was taxable at 12% under Serial No. 3(v)(a) of Notification No. 11/2017-CT(Rate) dated 28.06.2017.

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