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5% GST to apply in all railway catering services in trains or on stations

New Delhi: The Indian Railways had decided to apply the Goods and Services Tax on goods sold in trains and railway stations. 5% Uniform rate of GST would be applied to all railway catering services in trains or on stations.

The decision is said to remove any doubt or uncertainty in the matter of collecting taxes for the goods sold in trains.

The decision is also intended to bring uniformity in the rate of GST applicable to supply of food and drinks made available on trains, platforms or stations.

It has been clarified with the approval of the competent authority that the GST rate on 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 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 .

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