Composite supply of work pertain to railway,monorail and metro taxable @12%

ABB India Ltd

In this case , the Applicant seeks a ruling on Notification No. 11/2017 which is applicable for it’s supply to RVNL by way of erection, commissioning, installation, completion etc. of SCADA System.

The AAR ruled that

  1. According to Notification, the composite supply of works contract, as defined under section 2(119) of the GST Act, supplied by way of construction, erection, commissioning, or installation of original works pertaining to railways, including monorail and metro, is taxable @12%.
  2. Erection and commissioning of SCADA System involves attaching cables and other electrical equipment to the earth with no intention of removing or shifting them in foreseeable future. Hence, it’s immovable property and the work qualifies as works contract.
  3. The Applicant’s supply is not in the nature of repair and maintenance of an existing structure, but a new construction. Hence it is “original works”.
  4. SCADA is a power supply and distribution network installed for the purpose of the operation of the metro. It is a supply pertaining to railways.
  5. Hence, Notification No. 11/2017 is applicable to the applicant.

The details of the case can be accessed here :Case file

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