Buying food on trains and railway stations? Uniform 5% GST applicable, clarifies government

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New Delhi | Published: April 6, 2018 5:19:11 PM

The finance ministry today said a 5 per cent GST will be levied on food and drinks supplied by the Indian Railways or IRCTC in trains, platforms or stations.

indian railways, IRCTC, gst on railway catering services, GST rate on railway food, finance ministry, news on indian railways, latest news on indian railwaysThe Finance Ministry has written to the Railway Board on March 31 about the 5 per cent rate to remove any doubt or uncertainty in the matter. (PTI)

The finance ministry today said a 5 per cent GST will be levied on food and drinks supplied by the Indian Railways or IRCTC in trains, platforms or stations. The Finance Ministry has written to the Railway Board on March 31 about the 5 per cent rate to remove any doubt or uncertainty in the matter. This would bring about uniformity in the rate of GST applicable to supply of food and drinks made available 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 said. The Goods and Services Tax (GST), which subsumed over a dozen local levies, was rolled out from July 1, 2017.

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