TaxTMI 
TaxTMI 
TaxTMI 
2021 (8) TMI 353
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....104 of the CGST Rules, 2017 and Section 97 of the KGST Act, 2017 read with Rule 104 of KGST Rules, 2017 in FORM GST ARA-01 discharging the fee of Rs. 5,000/- each under the CGST Act and the KGST Act. 2. The applicant is a registered person under the provisions of the Central Goods and Services Tax Act, 2017 as well as the Karnataka Goods and Services Tax Act, 2017 (hereinafter referred to as the "CGST Act" and the "KGST Act/SGST Act" respectively) engaged in executing works contract services to South Western Railways. 3. The applicant has sought advance ruling in respect of the following question:- i. Applicability of GST rates for works contract services doing original works with South Western Railways. 4. Admissibility of the applica....
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....rks related to all welfare buildings (i.e. only colonies) are charged is 12% 5.3 The applicant submitted that as per the Notification No. 11/2017- Central Tax (Rate) - serial no. 3(v), the GST rate applicable is 12% if "composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017 is supplied by way of construction, erection, commissioning of original works pertaining to Railways (including monorail and metro). 5.4 The applicant has stated that as per Rule 2A of the Service Tax Rules 2006, "Original Works" has been defined as,- (a) all new constructions (b) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workab....
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....lways as produced by him, revealed that in Zonal Works, majority of the works they are executing are like provision of compound wall to Railway properties, laying of tiles for buildings, plumbing with new pipelines, provision of new GLR and OHT, Staff recreation like parks, new rain water harvesting structures, painting, renovation of old structures etc.. The applicant has claimed before the Railway Authorities that these are all original works as they involve new asset creation or bringing life to unused structures of Railways and these come under the works contract services as per CGST Act. 10. The issue is basically divided into two categories. One that results in the new buildings and the other repair and reconstruction of the old stru....
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....een that only "additions or alterations made to abandoned or damaged structures on land that are made to make them workable" are treated as original works and not all repairs and maintenance services. 10.5 The works carried out by the applicant are analyzed and found that they involve two types of works - one being new construction and other being repairs of old structures. In as far as construction of new structures are concerned which are constructed where nothing existed before would definitely fall under the realm of "original works". 10.6 But in case of constructions which are made where the structures already existed, the same can be classified as under: (a) where the additions and alterations are made to the abandoned structures ....
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...., flooring/dado work, roof leakages, etc. (2) carpentry works - wood work, doors and windows, cupboards, frames, shutters fitting and fastenings, rafters, reapers, wooden furnitures, roof sheeting etc. 13. To a question whether all repairs made to buildings constitute "original works", the answer is "no". It is only those services executed to make an unusable building usable again is covered under "original works". 14. Even those services which are provided in relation to the residential accommodation of staff, the matter is examined and found as under: The entry 3(vi) reads as under:- "(vi) Services provided to the Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Enti....
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....ion of rate of tax, it is submitted by the applicant that the contract is a single contract and it consists of multiple works. On the question whether this contract amounts to a composite supply or mixed supply or a bunch of separate supplies, it is seen that the same cannot be a composite supply of works contracts as there is no principal supply and the works are not naturally bundled. It cannot be a mixed supply also because the valuations of each of the supply of works are valued separately and they would amount to separate contracts. Hence, there is no common price for all the contracts. Hence it can be safely decided that each of the works mentioned in a schedule is a separate contract in itself and this is bolstered by the fact that t....