Railway-linked works contract relief depends on proving a genuine railway nexus before concessional GST applies.

A works contract for construction and allied civil and electrical works may fall within the definition of composite supply of works contract and, where the work is a new construction, may also qualify as original works. Concessional GST under the relevant notification is available only if the contract is affirmatively shown, on reliable evidence, to pertain to railways within the meaning of the Railways Act, 1989. In the absence of proof that the PSU-awarded work was for Government railway or non-Government railway, the necessary railway nexus was not established and the concessional entry did not apply; tax was payable at the normal rate.

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Issues: Whether the applicant's works contract for construction and allied works could be classified as a composite supply of works contract involving original works pertaining to railways so as to attract the concessional GST rate under the relevant notification.

Analysis: The supplied contract involved construction, installation and allied civil and electrical works, and was therefore a composite supply in the nature of works contract within the meaning of the statutory definition. The works were also found to be new constructions and thus original works. However, the decisive requirement was that the contract must pertain to railways. The applicant did not produce conclusive evidence that the work awarded by the PSU was in fact for railways within the meaning of the Railways Act, 1989, or that it related to either Government railway or non-Government railway. In the absence of such proof, the nexus with railways was not established.

Conclusion: The condition that the contract must pertain to railways was not satisfied, and the concessional rate under the notification was not available.

Final Conclusion: The contract remained outside the specific concessional entry and was liable to tax at the normal applicable rate.

Ratio Decidendi: A works contract qualifies for the concessional entry only if, in addition to being a composite supply of original works, the contract is affirmatively shown to pertain to railways on the basis of reliable evidence.

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