GST

GST Rate on supply of goods to Indian Railway when covered/not covered under Chapter-86-Clarirification

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.

Download Circular clarifying GST Rate on supply of goods to Indian Railway Click Here >>

Share

Recent Posts

  • Income Tax

Section 43CB & ICDS-III is applicable to contractors not to real estate developers

Section 43CB read with ICDS-III is applicable to contractors and not real estate developers - ITAT In a recent judgment,…

1 hour ago
  • Income Tax

Expenses of ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act.

Expenses incurred on ESOP are allowable as revenue expenditure u/s 37(1) of Income Tax Act – ITAT Delhi In a…

21 hours ago
  • Income Tax

Compliance history of supplier can’t be used to invalidate genuine business transactions of buyer

Compliance history of supplier could not be used to invalidate the genuine business transactions of the buyer especially when the…

21 hours ago
  • Income Tax

Reassessment quashed as AO issued notice u/s 148 instead of 153C as reopening was based on search

Reassessment quashed as AO issued u/s 148 instead of 153C as reopening was based on incriminating material found during search…

23 hours ago
  • Empanelment

Empanelment of CA/CMA /Legal firm for FEMA & other allied services at EPIL

Empanelment of Chartered Accountants/Cost Accountant/Legal firm for FEMA & other allied services Engineering Projects (India) Ltd. has invited application for…

1 day ago
  • Service Tax

Individual contract for booking persons for participation in event not event management liable to service tax

Individual contract for booking of persons for participation in an event is not “event management” contracts liable to service tax…

1 day ago