Facts –

• The Applicant M/s Shreejikrupa Project Limited is a company registered under The Companies Act, 2013 and is involved in construction of building and civil works 
• The company was awarded the tender for construction of CBD Railway Station in Sector 22, Naya Raipur, Chhattisgarh, as per the prescribed rules by Nava Raipur Atal Nagar vikas Pradhikaran (hereinafter called NRANVP).

Issue –

• Whether the works undertaken by the applicant will falls under Sr no 3 (v) of Notification 11/2017 Central Tax (Rate) dated 28 June 2017 as amended?

Order –

• The AAR held that SAC 9954 covers construction services, and on the basis of records furnished and available on record, is not in a position to conclusively hold the work undertaken by the applicant qualifies being treated as 'Composite supply' as per Section 2 (30) of CGST Act, 2017.
• The intended construction is forthcoming from the two documents appears to be an immovable property, there must also be transfer of property in goods involved in the execution of such contract. Thus the benefit of reduced rate of GST claimed by the applicant as provided under Notification supra is applicable only when the said civil work intended to be undertaken by the applicant fulfils all the conditions stipulated therein for being treated as 'Works Contract' as defined under Section 2 (119) of CGST Act, 2017.
• In addition to the non-adherence of the other aspects/conditions for availing the benefit of Notification claimed by the applicant, the AAR came to the conclusion that the said construction project being undertaken by the applicant cannot be termed as “pertaining to railways”, much essential for entitlement of the reduced rate of tax as provided under s.no. 3 (v) (a) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017 as amended. The same attracts GST @ 18% [9% CGST + 9% CGGST] under the residual entry at Sr. no. 3 (xii) of Notification No. 11/2017 Central Tax (Rate) dated 28.06.2017, as amended.