IMPACT OF GST ON CATERING SEGMENT IN RAILWAYS

Kolkata
12 Jul 2017

South Eastern Railway has taken steps for smooth implementation of New Tax System i.e. Goods & Services Tax (GST) and to spread awareness amongst the travelling passengers about the impact of GST in Catering Segment in Railways which has been effective from 1st July, 2017.
The chargeable GST on catering services on railways is as under:
*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)
*For static units having facility of air conditioning or central heating at any time during the year – 18% with full Input Tax Credit (ITC)
*For Rajdhani/Shatabdi/Duronto and other Mail/Express Trains – 18% with full Input Tax Credit (ITC)
*GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 18%
RELIEF TO PASSENGERS
*In case of Mail/Express Trains, the charges of onboard catering of Standard Menu Items have not changed even after 01/7/2017 i.e. they are available on existing rates even after 01/7/2017 onwards.
*In case of Rail Neer, the charge has remained unchanged even after 01/7/2017.
*In case of static catering units on stations, the charges of Standard Menu Items have not changed even after 01/7/2017 i.e. they are available on existing rates even after 01/7/2017 onwards.
In case of Rajdhani, Shatabdi, Duronto, Tejas etc trains where catering charges are included in the fare, the charges of catering component have changed/got modified as per new GST w.e.f. 01/7/2017. (EOIC)