Impact of GST on Railways by segment
The impact of GST on different segments is detailed below and in attached:
Passenger segment
● It has been decided to levy Goods & Services Tax (GST) in place of service tax including cess on transportation of passengers by rail.
● GST will be levied on the fare of passenger services in place of service tax (including cess) on the following classes:-
(i) AC first class (ii) Executive class (iii) AC-2 tier class (iv) AC-3 tier (v) AC chair car class (vi) AC economy class (vii) First class (viii) AC and first classes coaches of special trains/coaches on FTR (ix) All other type of first class and AC class coaches if any:-
● The rate of GST shall be 5% on total fares. (in place of 4.5% service tax levied earlier i.e. an increase of 0.5% only)
● On concessional tickets GST shall be levied at the prescribed rate on total actual fare collected after concession/rebate.
(i) In case of combined return journey tickets for AC & first class tickets, separate tickets for onward journey and return journey ticket may be issued in all cases whether for UTS tickets or for PRS tickets. However, for suburban UTS tickets for which journey originating/ terminating station is within the same state/same UTs issue of combined return journey ticket over suburban section shall continue.
(ii) Circular journey tickets for AC & first class tickets shall be discontinued w.e.f. 01.07.2017.
(iii) Issue of AC Class tickets from UTS counter shall be discontinued w.e.f. 01.07.2017.
(iv) Issue of cluster tickets from PRS for AC & first class tickets shall be discontinued w.e.f. 01.07.2017. However, issue of cluster ticket in UTS shall continue.
(v) In any other case if combined ticket are issued except season ticket the same will be discontinued and only point to point tickets will be issued in AC classes and First classes as proposed above.
● In case tickets were booked in advance along with service tax for journeys to commence on or after date of implementation of GST, the Goods & Service Tax difference of fare shall not be collected on the tickets booked in advance. The new GST shall be applicable on tickets issued on or after 01.07.2017.
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Catering Segment
● The chargeable GST on catering services on railways is as under:-
(i) For static units not having facility of air conditioning or central heating at any time during the year- 12% with full Input Tax Credit (ITC)
(ii) For Static units having facility of air conditioning or central heating at any time during the year- 18% with full Input Tax Credit (ITC)
(iii) For Rajdhani/Shatabdi/Duronto and other Mail/Express trains-18% with full Input Tax Credit (ITC)
(iv) GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 18%.
● The above GST on catering charges is applicable w.e.f. 01.07.2017.
● The impact of new GST regime on catering will be as given below:
a) In case of, Mail/Express Trains, the charges of onboard catering of Standard Meal Items will not change even after 1st July,2017 i.e. they will continue to be available on existing rates even after 1st July 2017 onwards- a big relief to passengers.
b) In case of Rail Neer, the charges will remain unchanged even after 1st July,2017- a big relief to passengers.
c) In case of static catering units on stations, the charges of Standard Meal Items will not change even after 1st July,2017 i.e. they will continue to be available on existing rates even after 1st July 2017 onwards- a big relief to passengers..
d) In case of Rajdhani, Shatabdi, Duronto,Tejas etc trains where catering charges are included in the fare, the charges of catering component will change/ get modified as per the new GST w.e.f 01st July,2017.
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Parcel Segment
● It has been decided to levy Goods & Services Tax (GST) in place of service tax including Cess on transportation of Parcel traffic (leased or non-leased) by rail.
● The detailed procedure for levy of GST on transportation of parcel traffic by rail shall be as under:-
● Goods and Service tax (GST) will be levied for transportation of all description of parcel traffic (leased or non-leased parcel traffic) and merchandise items (for commercial use) booked as luggage.
● Luggage traffic i.e. personal baggage belonging to the travelling passengers, (Excluding merchandise items for commercial use), shall be exempted from GST. The details of other commodities exempted from GST shall be as under:-
(i) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap
(ii) Defence of military equipments
(iii) Newspaper or magazines registered with the Registrar of Newspapers
(iv) Railway equipments or materials
(v) Agricultural produce
(vi) Milk, salt and food grain including flours, pulses and rice
(vii) Organic manure
● The rate of GST shall be 5% on total freight. (in place of 4.5% service tax levied earlier- an increase of 0.5% only)
● Goods & Services Tax will be levied on the total freight as reflected in the Parcel Way Bill and /or Luggage ticket and /or Money receipt (in case of leased traffic) issued on or after 01.07.2017 and it will be collected at the time of booking and preparation of Parcel Way Bill/Luggage ticket/Money receipt.
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Freight segment
● It has been decided to impose 5% GST rates on Goods & Service for transportation of Goods by rail.( It is in place of 4.5% service tax levied earlier i.e. an increase of only 0.5%)
● It will be levied on total freight charges.
● This rate will also be applicable to all ancillary charges levied on transportation of Goods Traffic.
● Some essential commodities which have been exempted from levy of GST as given below:
a) Relief material for victims of natural or manmade disasters, calamities, accidents or mishaps.
b) Defence or military equipments
c) Newspapers or magazine registered with the registrar of newspapers.
d) Railway Equipments or materials
e) Agriculture produce
f) Milk, salt and foodgrain including flours, pulses & rice
g) Organic manure more
Passenger segment
● It has been decided to levy Goods & Services Tax (GST) in place of service tax including cess on transportation of passengers by rail.
● GST will be levied on the fare of passenger services in place of service tax (including cess) on the following classes:-
(i) AC first class (ii) Executive class (iii) AC-2 tier class (iv) AC-3 tier (v) AC chair car class (vi) AC economy class (vii) First class (viii) AC and first classes coaches of special trains/coaches on FTR (ix) All other type of first class and AC class coaches if any:-
● The rate of GST shall be 5% on total fares. (in place of 4.5% service tax levied earlier i.e. an increase of 0.5% only)
● On concessional tickets GST shall be levied at the prescribed rate on total actual fare collected after concession/rebate.
(i) In case of combined return journey tickets for AC & first class tickets, separate tickets for onward journey and return journey ticket may be issued in all cases whether for UTS tickets or for PRS tickets. However, for suburban UTS tickets for which journey originating/ terminating station is within the same state/same UTs issue of combined return journey ticket over suburban section shall continue.
(ii) Circular journey tickets for AC & first class tickets shall be discontinued w.e.f. 01.07.2017.
(iii) Issue of AC Class tickets from UTS counter shall be discontinued w.e.f. 01.07.2017.
(iv) Issue of cluster tickets from PRS for AC & first class tickets shall be discontinued w.e.f. 01.07.2017. However, issue of cluster ticket in UTS shall continue.
(v) In any other case if combined ticket are issued except season ticket the same will be discontinued and only point to point tickets will be issued in AC classes and First classes as proposed above.
● In case tickets were booked in advance along with service tax for journeys to commence on or after date of implementation of GST, the Goods & Service Tax difference of fare shall not be collected on the tickets booked in advance. The new GST shall be applicable on tickets issued on or after 01.07.2017.
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Catering Segment
● The chargeable GST on catering services on railways is as under:-
(i) For static units not having facility of air conditioning or central heating at any time during the year- 12% with full Input Tax Credit (ITC)
(ii) For Static units having facility of air conditioning or central heating at any time during the year- 18% with full Input Tax Credit (ITC)
(iii) For Rajdhani/Shatabdi/Duronto and other Mail/Express trains-18% with full Input Tax Credit (ITC)
(iv) GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 18%.
● The above GST on catering charges is applicable w.e.f. 01.07.2017.
● The impact of new GST regime on catering will be as given below:
a) In case of, Mail/Express Trains, the charges of onboard catering of Standard Meal Items will not change even after 1st July,2017 i.e. they will continue to be available on existing rates even after 1st July 2017 onwards- a big relief to passengers.
b) In case of Rail Neer, the charges will remain unchanged even after 1st July,2017- a big relief to passengers.
c) In case of static catering units on stations, the charges of Standard Meal Items will not change even after 1st July,2017 i.e. they will continue to be available on existing rates even after 1st July 2017 onwards- a big relief to passengers..
d) In case of Rajdhani, Shatabdi, Duronto,Tejas etc trains where catering charges are included in the fare, the charges of catering component will change/ get modified as per the new GST w.e.f 01st July,2017.
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Parcel Segment
● It has been decided to levy Goods & Services Tax (GST) in place of service tax including Cess on transportation of Parcel traffic (leased or non-leased) by rail.
● The detailed procedure for levy of GST on transportation of parcel traffic by rail shall be as under:-
● Goods and Service tax (GST) will be levied for transportation of all description of parcel traffic (leased or non-leased parcel traffic) and merchandise items (for commercial use) booked as luggage.
● Luggage traffic i.e. personal baggage belonging to the travelling passengers, (Excluding merchandise items for commercial use), shall be exempted from GST. The details of other commodities exempted from GST shall be as under:-
(i) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap
(ii) Defence of military equipments
(iii) Newspaper or magazines registered with the Registrar of Newspapers
(iv) Railway equipments or materials
(v) Agricultural produce
(vi) Milk, salt and food grain including flours, pulses and rice
(vii) Organic manure
● The rate of GST shall be 5% on total freight. (in place of 4.5% service tax levied earlier- an increase of 0.5% only)
● Goods & Services Tax will be levied on the total freight as reflected in the Parcel Way Bill and /or Luggage ticket and /or Money receipt (in case of leased traffic) issued on or after 01.07.2017 and it will be collected at the time of booking and preparation of Parcel Way Bill/Luggage ticket/Money receipt.
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Freight segment
● It has been decided to impose 5% GST rates on Goods & Service for transportation of Goods by rail.( It is in place of 4.5% service tax levied earlier i.e. an increase of only 0.5%)
● It will be levied on total freight charges.
● This rate will also be applicable to all ancillary charges levied on transportation of Goods Traffic.
● Some essential commodities which have been exempted from levy of GST as given below:
a) Relief material for victims of natural or manmade disasters, calamities, accidents or mishaps.
b) Defence or military equipments
c) Newspapers or magazine registered with the registrar of newspapers.
d) Railway Equipments or materials
e) Agriculture produce
f) Milk, salt and foodgrain including flours, pulses & rice
g) Organic manure more
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View all 22 comments Below 22 comments
Yes, food delivery from registered eateries should be allowed with online and call facility. Feedback and complaints options should be available. Tea, coffee and water should be made available. more
Jul 04
1. Since Railway is not able to control quality of food, it is a good suggestion to remove food component from tickets, even though Railway may loose revenue on this head. Those who want to buy can do so knowing fully well the quality of food. 2. At the same time it should be mandatory for vendors, allowed to sell food in train, to provide a bill-cum-receipt for items sold / supplied by them whether a passenger asks for it or not. This will prevent vendors to sell food at at double or even more prices & loot passengers. In no case it should be responsibility of passengers to ask for bill-cum-receipt & face the abuse of vendors. 3. In no train a simple item like tea or coffee is being sold by vendors at Rs. 10/- against Railway authorized price of Rs. 4/- & Rs. 5/- for tea & Coffee respectively. As it may not be feasible to issue bill / receipt for tea / coffee, tea / coffee rates may be printed on paper cups itself. more
Jul 04
I agree remove the food and water from the ticket inclusion like the budget airlines! One who needs pays and pre-books. more
Jul 03
One suggestion is to remove food supply in Shatabdi & Rajdhanis as the quality is very poor....it's never a value for money....it only drives socialism & corruption....better to declare the name of the vendor and ask them to produce the receipt to every passenger who is availing the food service....better to remove it from the base fare....if there is compulsion of keeping it as said above, then it's better to appoint good brands who are careful to serve good food...but declaring the name of the vendor is obvious for competition & clarity...Regards On Sat, 01 Jul 2017 07:17:42 +0530 "Ministry Of Railways" wrote > more
Jul 02
