5% GST levied on food, drinks supplied in trains, platforms
What's the story
Clearing all doubts about GST on Railway services, the Finance Ministry confirmed a 5% GST would be levied on food and drinks supplied on trains and platforms. A notification about the same has been sent to the Railway Ministry by the Finance Ministry, on March 31. This is being done to bring uniformity in the rate of GST applicable on Railway services.
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What does the Finance Ministry's statement say
The statement reads, "It has been clarified ... that the GST rate on the supply of food and drinks by the Indian Railways or IRCTC or their licensees, whether in trains or at platforms, will be 5% without input tax credit."
Details
Earlier, only railways transport attracted 5% GST
After the GST roll-out on July 1, 2017, train fares hiked marginally. Earlier, the tax levied on AC ticket was 4.5% which became 5%. Transportation of goods by train attracted a 5% GST. However, few items like relief material for disaster-struck areas, railway equipment or materials, milk, salt and food grain including flour, pulses, and rice, organic manure; were exempted from it.