indianrailways.gov.in GST Indian Railways

Organisation : Indian Railways
Service Name : GST Indian Railways
Applicable States/ UTs : All India
Home Page : https://indianrailways.gov.in/
Details Here : http://www.indianrailways.gov.in/GST/index.html

GST Indian Railways

It is a destination based tax on consumption of goods and services.

Related : Indian Railways IRCTC Online Advance Rail Reservation/ E-Ticket Booking : www.statusin.in/17982.html

It is proposed to be levied at all stages right from manufacture up to final consumption with credit of taxes paid at previous stages available as setoff. In a nutshell, only value addition will be taxed and burden of tax is to be borne by the final consumer.

GST Rates Applicable to Railways

** Transport of goods by rail – 5%
** Transport of passengers by rail by way of
(i) By first class — 5%
(ii) By air-conditioned coach – 5%
** Retiring room (Tariff per day Upto Rs 999)—-Nil
** Retiring room (Tariff per day Rs1000 to Rs 2499)—12%
** Retiring room (Tariff per day Rs 2500 to Rs 4999)—18%
** Retiring room (Tariff per day Rs 5000 or above)—28%
** Rental of immovable property—18%
** Sale of scrap : Ferrous/ Copper/ Glass—18%
** Sale of scrap : Wood—5%

Frequently Asked Questions

General

What is meant by Reverse Charge?
It means the liability to pay tax is on the recipient of supply of goods and services instead of the supplier of such goods or services in respect of notified categories of supply.

Is the reverse charge mechanism applicable only to services?
No, reverse charge applies to supplies of both goods and services, as notified by the Government on the recommendations of the GST Council.

In which class and category of trains, GST is applicable?
GST is applicable on total fare of AC and First class only of all categories of trains. GST is not applicable in other classes like second sleeper, second class (reserved & unreserved) etc.

If the ticket is booked before 01.07.2017, whether service tax shall be refunded in case of cancellation of tickets after 01.07.2017?
Yes. However, GST shall be levied on the cancellation/clerkage charge.

Job Work Procedure

What is job-work?
Section 2(68) of the CGST Act, 2017 defines job-work as ‘any treatment or process undertaken by a person on goods belonging to another registered person’. The one who does the said job would be termed as ‘jobworker’.

The ownership of the goods does not transfer to the job-worker but it rests with the principal. The jobworker is required to carry out the process specified by the principal on the goods.

Time Limits For The Return Of Processed Goods :
As per section 19 of the CGST Act, 2017, inputs and capital goods after processing shall be returned back to principal within one year or three years respectively of their being sent out.

Further, the provision of return of goods is not applicable in case of moulds and dies, jigs and fixtures or tools supplied by the principal to job-worker.