Facts –

• The Applicant, Triveni Engicons Private Limited, has been awarded a contract by M/s Rites Limited, a Public Sector Undertaking owned by the Ministry of Railways, Government of India. The work comprises of construction of earthwork, Construction of Service Building including Internal Electrification, Installation, etc.

Issue –

• Whether the supply made by the applicant would attract tax @ 12% vide serial number 3(v) (a) of Notification No. 11/2017 – Central Tax (Rate) dated 28.06.2017?

Order –

• The AAR observed on due consideration of the nature of works being undertaken by the applicant as detailed in the scope of work, that the work is in relation to immovable property and certainly involves transfer of property in goods thereby qualifies to be a “works contract” as defined in clause (119) of section 2 of the GST Act.
• Further, the work executed by the applicant in connection with construction of New Railway siding at Jhanjra Area, ECL pertains to railways.
• Hence the contract for construction of new railway siding at Jhanjra Area of ECL against order received from M/s. RITES Ltd would be taxable @ 12% vide Sl. No. 3(v)(a) of Notification No 11/2017-Central Tax (Rate) dated 28.06.2017 till omission of the said entry vide Notification No. 03/2022- Central Tax (Rate) dated 13.07.2022.