The AAR, Karnataka in the matter of M/s S.K. Swami & Company [Advance Ruling No. KAR ADRG 05/2023 dated January 23, 2023] has ruled the rate of Goods and Services Tax (“GST”) @ 18% is exigible on works contract services executed to Indian Railways by the assessee either as a main contractor or as a subcontractor for the construction of railways under-bridge and tunnels and works contract services involving predominantly earthwork would attract GST @ 12% as per Notification No. 11/2017 Central Tax (Rate) dated June 28, 2017 (“the Services Rate Notification”). Further, GST @ 5% is exigible for the supply of ballast to railways as per Notification No. 1/2017- Central Tax (Rate) dated June 28, 2017 (“the Goods Rate Notification”).