Nidhi | Jun 14, 2025 |
GST Rate of 18% Applicable on Rail Track Testing and commissioning service: AAR
The applicant, M/s Gantrex India Crane Rails Private Limited, is a company in Maharashtra. The applicant provides work contract services to its customers. The applicant received a purchase order (No. SHAR/VAST/2018E099350101 dated 07.05.2019) from Satish Dhawan Space Centre SHAR (SDSC SHAR), an establishment under ISRO. The purchase order was received for the work of erection, testing, and commissioning of rail tracks for handling assembled staged rockets from the Assembly Building to the Launch Pad. The rail tracks are considered immovable property, as they are civil structures.
An application was filed by the applicant under Section 97 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017, to get an advance ruling for the following questions.
“1. Whether the instant provision of testing and commissioning service of Rail Track is classifiable under sl. No.3 (vi) (a) of Notification no. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended)?
2. In case where the answer to question No. 1 is in negative, what shall be the classification and the rate of tax?”
As per the Maharashtra Authority for Advance Ruling:
1. The instant provision of testing and commissioning service of Rail Track is not classifiable under sl. No.3 (vi) (a) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended).
2. The instant provision of testing and commissioning service of Rail Track must be classified under Heading 9954 and more specifically under Sr.No.3(xii) of Notification 11/2017 Central Tax dated 28.6.2017, and the applicable GST rate would be 18% (9% CGST+ 9% SGST).
Refer to the official advance ruling for more information.
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