The Authority of Advance Ruling (AAR) Bengal, that Goods and Services Tax (GST) at the rate of 12% will be applicable to the supply of works for Metro and Monorail Construction contracts.
The order was given under the case of an application raised by ABB India Ltd., under which the authority found that it was described under Section 2 (119) of Goods and Services Tax Act that the rate of tax on the works of construction, erection, commissioning, or installation of works related to railways, metro and monorail will be charged at the rate of 12%. The section provides the details for the rates under the composite supply of works.
The applicant, ABB India Ltd. is involved in electrification, motion and robotics, data management, industrial automation, production control, and various other technological and system solutions.
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The contract of Supervisory Control and Data Acquisition (SCADA) was extended for Noapara Dakshineswar Metro Corridor (DMC) by the Rail Vikas Nigam Ltd. (RVNL).
The query of the applicant was that, whether the details of tax rates listed under GST Notification 
Check out the latest 2020 & 2019 GST notification on tax and rate in PDF formats such as Central, Integrated, Union Territory in English and Hindi language. Read more dated 28th June, 2017 Rule 3 (V) was applicable to the works of Rail Vikas Nigam Ltd. (RVNL) like those of construction, erection, commissioning, or installation and others of Supervisory Control and Data Acquisition (SCADA).
The AAR Bengal with Susmita Bhatacharya and Parthsarthi Dey as the members stated that the works of construction, erection, commissioning, or installation and others under Rail Vikas Nigam Ltd. (RVNL) were taxable at the rate of 12% as prescribed under Section 2 (119) of Goods and Services Tax Act.
Therefore it was established that the applicant’s query regarding Notification dated 28th June 2017 Rule 3 (V) was applicable to works of construction, erection, commissioning, or installation and others under Rail Vikas Nigam Ltd. (RVNL) including the works of Metro and Monorail.
