GST RATE OF TAX AT 5% FOR SUPPLY OF FOOD AND DRINKS BY RAILWAYS
IN THE TRAINS AND AT RAILWAY STATION PLATFORMS
The Goods and Services Tax
Act, 2017 came into force in India with effect from 1.7.2017.
The Central Government has
clarified that the supply of food and drinks by the Indian Railways or Indian
Railways Catering and Tourism Corporation Ltd, or their Licensees, whether in
trains or at Platforms (static units), will be 5% without Input Tax Credit.
The Press Release issued by
the Central Government and Order No. 2/2018 -
GST are given below for ready reference.
PRESS RELEASE
6th April, 2018
Subject: 5% Uniform rate of GST to apply in all railway catering services in
trains or on stations
With a view to remove any doubt or uncertainty
in
the matter and bring uniformity
in the rate of GST applicable to supply of food and drinks made
available in trains, platforms or stations, it has been clarified with the approval of the competent authority that the GST rate
on supply of food and drinks by the Indian
Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms (static units),
will be
5%
without input
tax credit.
The
copy
of
letter
F.No. 354/03/2018-TRU
dated
31.03.2018
(Order
No.
2/2018
–
GST)
issued
to
the
Railway Board
is
available
at www.cbec.gov.in
F.No. 354/03/2018-TRU
Ministry of Finance
Department of Revenue
(Central Board
of Excise and Customs)
(Tax Research Unit)
…….
New Delhi,
To
Sh. Sanjiv Garg,
Additional Member (Tourism & Catering), Railway Board, Ministry of Railways,
Rail Bhawan, New
Delhi – 110001.
Sir,
Subject:
Incidence
of GST
on providing
catering services
in
train –
regarding.
Kind reference is invited to your letter No. 2012/TG.III/631/2 dated 01.02.2018 requesting therein to clarify the rate
of
GST applicable to supply of food and drink in trains.
2. Different GST rates are being applied for mobile and static catering in Indian
Railways which is presently leading to a situation whereby the same licensee (selected
by
Indian Railways/IRCTC)
supplying the same
food would be subjected to different GST rates depending on whether it is mobile or static catering, as also which variant of mobile catering it is [pre-paid (without option), pre-paid
(with option) or post-paid]. The rate difference is resulting in the same food being supplied at two different rates
to the railway passengers, which
is anomalous.
3. The passenger is not aware as to the GST rate applicable
to the food ordered by
him/her. This may also lead to unnecessary litigation and thus further strengthens the
need for uniform application of tax
rate
in respect of food and drinks in/by
Railways.
4. With a view to remove any doubt or uncertainty in the matter and bring uniformity
in
the rate of GST
applicable for all
kinds of supply of food and
drinks made available
in trains, platforms or stations, it is
clarified with the approval of GST Implementation
Committee, that
the GST rate on supply of food and/or drinks by the Indian Railways or Indian Railways Catering
and Tourism Corporation Ltd. or their
licensees, whether in
trains or at platforms (static units),
will be 5% without ITC.
Yours Sincerely,
(Parmod Kumar)
OSD (TRU II)
Telephone: 011-23092374
E-mail: parmodkumar.71@gov.in