Applicability of Goods and Service Tax (GST) on Tea/Coffee, Breakfast and Standard Meals

(Commercial Circular No.48 of 2017)

The issue of implementation of Goods and Service Tax (GST) on Tea/Coffee, Breakfast and Standard Meals on Indian Railways has been examined in consultation of Finance Commercial Dte. of Railway Board. Accordingly, following are advised:-

l. 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 Mail/Express trains -18% with full Input Tax Credit (ITC)

2. The above GST on catering charges is applicable w.e.f 01.07.2017.

3. Further, the rates notified vide Commercial Circular No. 78 of 2012 remain unchanged after applicability of GST but are now inclusive of GST rates @12% for static units without Air Conditioning and Central Heating and @18% on static unit with Air Conditioning and Central Heating. Further, for mobile catering units (where catering charges are not included in the ticket fare), the rates remain same as in Commercial Circular No.78 of 2012 but will be inclusive of GST @ 18%.

(Smita Rawat)

Exe. Director (T&C)

Railway Board