Indian Railways Catering Services To Charge 5% GST. Here’s How Much Your Food Will Cost Now?

Indian Railways Catering Services To Charge 5% GST. Here's How Much Your Food Will Cost Now?

The Ministry of Finance wrote to the Railway Board about the 5% GST rate on March 31

The Ministry of Finance on Friday said a 5 per cent GST (Goods and Services Tax) will be levied on food and drinks supplied by the Indian Railways or IRCTC (Indian Railway Catering and Tourism Corporation) in trains, platforms or stations. The Ministry of Finance wrote to the Railway Board on March 31, 2018 about the 5 per cent rate to remove any doubt or uncertainty in the matter.

“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 or their licensees, whether in trains or at platforms (static units), will be 5 per cent without input tax credit,” the statement said.

The Goods and Services Tax (GST), which replaced a host of indirect taxes, came into effect on July 1,  2017.

source : https://www.ndtv.com/business/railway-catering-services-in-trains-stations-to-attract-5-gst-says-finance-ministry-1834098

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