Page 162 - GSTL_16th July 2020_Vol. 38_Part 3

400 GST LAW TIMES [ Vol. 38
9. The applicant has put the following question for advance ruling in
their application :-
“Whether the Contract with Railtel Corporation of India Ltd. will fall under
the Notification No. 24/2017-Central Tax (Rate) Sr. No. 3(iv)-Construction
Service or Original Work to Government Authority, and the rate of tax ap-
plicable be 12%?”
10. On going through the Notification No. 24/2017-Central Tax (Rates),
it is seen that only Sr. No. 3(vi) finds mention whereas there is no mention of Sr.
No. 3(iv) therein. We find that the original notification issued in this case is Noti-
fication No. 11/2017-Central Tax (Rates), dated 28-6-2017 (which contained Sr.
No. 3(i) to (iii) pertaining to Works Contract Service) which was first amended by
Notification No. 20/2017-Central Tax (Rates), dated 22-8-2017 (wherein Sr. No.
3(iv) to 3(vi) pertaining to Works Contract Service were inserted) and later on
amended by Notification No. 24/2017-Central Tax (Rates), dated 21-9-
2017(wherein Sr. No. 3(vi) of the previous notification was amended and another
Sr. No. 3(vii) was inserted with respect to Works Contract Service). The said noti-
fication has thereafter been amended from time to time. It therefore appears that
the applicant has wrongly mentioned Sr. No. 3(iv) instead of 3(vi) of Notification
No. 24/2017-Central Tax (Rates), dated 21-9-2017 which appears to be a typo-
graphical error by the applicant. Also, the applicant vide his submission dated
19-3-2020 has referred to Sr. No. 3(vi) of Notification No. 24/2017-Central Tax
(Rates) and the same was also discussed by the representative of the applicant
during the course of personal hearing held on 12-3-2020. We would therefore
consider the question for advance ruling of the applicant to be as follows :
“Whether the Contract with Railtel Corporation of India Ltd. will fall under
the Notification No. 24/2017-Central Tax (Rate) Sr. No. 3(vi)-Construction
Service or Original Work to Government Authority, and the rate of tax ap-
plicable be 12%?”
11. The issue for consideration is whether the two contracts in question
are covered under Entry No. 3(vi)(a) of Notification No. 24/2017-Central Tax
(Rate), dated 21-9-2017 [which amends original Notification No. 11/2017-Central
Tax (Rate), dated 28-6-2017] as amended from time to time, liable to tax at 12%
(CGST + SGST together) or not.
12. The entry No. 3(vi) of the above notification reads as under :

Sl. Heading Description of Services Rate Condition
No.
(1) (2) (3) (4) (5)
3. Heading “(vi) Composite supply of works 12% Provided that
9954 contract as defined in clause (119) where the ser-
of Section 2 of the Central Goods vices are sup-
and Services Tax Act, 2017, pro- plied to a Gov-
vided to the Central Government, ernment Entity,
State Government, Union Territo- they should
ry, a local authority, a governmen- have been pro-
tal authority or a Government En- cured by the
tity by way of construction, erec- said entity in
tion, commissioning, installation, relation to a
completion, fitting out, repair, work entrusted
maintenance, renovation, or altera- to it by the
tion of - Central Gov-
GST LAW TIMES  16th July 2020  162