Shree Construction

The Maharashtra AAAR upheld  the ruling pronounced by the Advance Ruling Authority by observing that any supply of works contract pertaining to the railways including monorail and metro is subject to concessional rate of 12% GST. In the instant case, though the respondent i.e. M/s. Shree Construction is providing works contract services to its main contractor who has entered into works contract agreement with railways, the composite supply of works contract being carried out by M/s. Shree Construction is ultimately going to the use of railways without being subjected to any change or modification, thus the said works contracts, though undertaken by the subcontractor, is undoubtedly pertaining to the railways and no one else’s. thus, the condition specified under item (v) of the Sr. 3 of the said notification is completely fulfilled, therefore the services provided by the sub-contractor would attract concessional rate of 12% GST.