After being brought into action from mid-July 2017, the Goods and Services Tax (GST), which has replaced a number of local and national taxes, has now found its way into the working of the Indian Railways. The Ministry of Finance announced on Friday that a 5 percent GST will now be applicable on food and drinks provided by the Indian Railways or Indian Railway Catering and Tourism Corporation (IRCTC) in trains, platforms or stations.
“It has been clarified…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, will be 5 per cent without input tax credit,” the statement read.
5% Uniform rate of GST to apply in all railway catering services in trains or on stations; For full details, please Log on: https://t.co/GBPToCcSnm
— Ministry of Finance (@FinMinIndia) April 6, 2018
Earlier on March 31, the Finance Ministry had written to the Railway Board to coagulate the 5 percent GST on the aforementioned Railway services. According to a tweet by the Ministry of Finance’s official Twitter account, this new move will “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”.
The Goods and Services Tax was officially introduced in India from July 1, 2017.