GST Rate on supply of goods to Indian Railway when covered/not covered under Chapter-86-Clarirification
As per Notification No. 1/2017-Central Tax (Rate) dated 28th June, 2017 read with Notification No. 5/2017-Central Tax (Rate) dated 28th June, 2017, goods/services classified under Chapter 86, attarct GST at the rate of 5 per cent without refund of unutilised Input Tax Credit (ITC). Whereas, goods covered under any other chapter are subject to GST at the applicable rates prescribed by the Notification No. 2/2017-Central Tax (Rate) dated 28th June, 2017 read with Notification No. 5/2017-Central Tax (Rate) dated 28th June, 2017.
The Government had received representations that few suppliers/contarctors were making supply of such goods to the Railways which should be classified under other tan Chapter-86 but they are being subjected to 5% GST.
GST Rate on supply of goods to Indian Railway
The matter was considered in the 25th meeting of the GST Council held on 18th January, 2018 and it was decided to issue a clarification in this regard.
Now, the Government has issued a circular clarifying as under:
- Goods being supplied to the Railway which are covered and classified under Chapter-86 shall be subjected to GST @ 5% with no refund of unutilised input tax credit (ITC).
- Other goods which are covered under other chapters, even if supplied to Railwat, shall attarct GST at the rates as mentioned in the applicable notifications.