F.No. 354/03/2018-TRU
Ministry of Finance
Department of
Revenue
(Central Board of Excise and Customs)
(Tax Research Unit)
……. New Delhi Dated: the 31st day of March, 2018
Order No. 2/2018 – Central Tax
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
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