Welding of railway tracks along with labour services is a Composite Supply taxable at 18% GST

Last updated: 07 January 2023

Court :
AAR, West Bengal

Brief :
The AAR, West Bengal in the matter of M/s Purple Distributors Pvt. Ltd. [Advance Ruling No. WBAAR 18 of 2022 dated December 22, 2022] has ruled that welding process on the railway tracks along with supply of labour services shall be treated as 'Composite Supply' of services falling under Tariff 995429 and shall be taxable at the rate of 18% vide serial number 3(xii) of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 ("the Services Rate Notification").

Citation :
The AAR, West Bengal in the matter of M/s Purple Distributors Pvt. Ltd. [Advance Ruling No. WBAAR 18 of 2022 dated December 22, 2022] has ruled that welding process on the railway tracks along with supply of labour services shall be treated as 'Composite Supply' of services falling under Tariff 995429 and shall be taxable at the rate of 18% vide serial number 3(xii) of Notification No. 11/2017-Central Tax (Rate) dated June 28, 2017 ("the Services Rate Notification").