TaxTMI 
TaxTMI 
2021 (8) TMI 353
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....7 of CGST Act, 2017, read with Rule 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 Wes....
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....siness/commerce establishments and rate charged is 18% (even for original works), (b) Works 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 ....
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....the second set of work, he is executing works contracts not involving new construction. The correspondence of the applicant with the Railways 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 iss....
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....ication No. 12/2017-Central Tax (Rate), the same can be adopted in relation to Notification No. 11/2017-Central Tax (Rate) also. 10.4 On careful examination of the above definition, it is seen 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 Bu....
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....ate of tax. 12. The tender documents produced by the applicant gives the nature of the contract - 3,- (a) Maintenance, repair/ replacement of (1) masonry works - brick work, concreting, grouting, plastering, pointing, 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 accom....
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....nnot be covered under entry 3(vi)(a). However, the services of repairs, maintenance, renovation and alterations of residential complex meant for use of the Railway employees are covered under entry 3(vi) of the Notification and hence eligible for tax at 6% CGST. 15. As far as the question 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 ....