Railway catering services to attract 5% GST

Apr 7, 2018

The Union finance ministry on Friday notified that a uniform rate of 5 percent will be charged towards Goods and Services Tax (GST) in all railway catering services in trains or stations.

As per the Central Board of Excise and Customs (CBEC), the decision has been taken 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

The supply of food and drinks by

  • the Indian Railways
  • Indian Railways Catering and Tourism Corporation Ltd or their licensees, whether in trains or at platforms (static units)  will be 5 percent sans input tax credit.

In March, IRCTC had introduced Point of Sale (POS) hand-held machines in trains, after many passengers filed complaints of train vendors overcharging passengers.

Soon after, the IRCTC released an official statement announcing the availability of POS machines at railway stations, thus helping passengers remain aware of relevant pricing information.

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