Impact of GST in goods & parcel segments in rail transportation

Kolkata
11 Jul 2017

Goods and Services Tax (GST) has been implemented in India with effect from 1st July 2017.  Implementation of GST on Railways has so far been smooth and transparent.  5% GST rates on Goods and Service for transportation of Goods by rail has been imposed in place of 4.5% service tax levied earlier i.e. an increase of 0.5% only.  This will be levied on total freight charges. This rate will also be applicable to all ancillary charges levied on Goods Traffic.  The essential commodities which have been exempted from levy of GST are relief materials for victims of natural or manmade disasters, calamities, accidents or mishaps, defence or military equipment, newspaper or magazine registered with the registrar of newspapers, railway Equipments or materials, agriculture produce, milk, salt and food grain including flours, pulses & rice and organic manure.
GST has also been levied in place of service tax including cess on transportation of all description of Parcel Traffic (leased or non leased) and merchandised items for commercial use booked as luggage by rail.  Exemption has been given on luggage traffic i.e. personal baggage belonging to the travelling passengers excluding merchandised items for commercial use.  The details of other commodities exempted from GST are relief materials for victims of natural or manmade disasters, calamities, accidents or mishaps, defence or military equipment, newspaper or magazine registered with the registrar of newspapers, railway equipments or materials, agriculture produce, milk, salt and food grain including flours, pulses & rice and organic manure.
The rate of GST is 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. (EOIC)