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| Circular number | Commercial Circular No. 21 of 2018 |
|---|---|
| File number | No. 2012/TG.11/631/2 |
| Date | 2018-04-09 |
| Type | Commercial Circular |
| Topic | catering |
| Currency | Historical — likely superseded |
| Official PDF | indianrailways.gov.in |
Incidence of Goods and Service Tax (GST) on provision of Catering Services over IR | Type of service Catering charges ae Catering charges to |Catering Charges to be
SMe LI
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD
No. 2012/TG.11/631/2 New Delhi dated 09/04/2018
The General Managers
Ali Indian Railways
CMD/IRCTC,
New Delhi
CMD/KRCL,
Navi Mumbai
(Commercial Circular No. 34 of 2018)
Sub: Incidence of Goods and Service Tax (GST) on provision of Catering Services over IR.
Ref: (i) Commercial Circular No. 78 of 2012 dated 21.12.2012.
(ii) Commercial Circular No. 44 of 2017 dated 29.06.2017
(iii) Commercial Circular No. 48 of 2017 dated 30.06.2017
(iv) Board’s letter No. 2016/AC-II/01/Misc./GST (RBA No. 164/2017) dtd 20.11.2017
(v) Board’s letter no. 2017/TG-III/63 1/6 dated 18/09/2017.
(vi) Commercial Circular No. 79 of 2017 dated 01.12.2017
Ministry of Finance (Department of Revenue) vide O.M..No. 354/03/2018 — TRU dated
31.03.2018 has clarified that “the applicable GST rate on supply of food and/or drinks by Indian
Railways or IRCTC or their licensees, whether in trains or at platforms (static units), will be 5%
without Input Tax Credit (ITC”). Based on the clarifications received from Ministry of Finance,
following are advised :-
iF For levy of GST on catering services through static units on Indian Railways including
parliament canteen, instructions issued vide CC No. 79 of 2017 dated 01/12/2017 will continue to be
in vogue.
De For all mobile units, the applicable GST rate, on supply of food and/or drinks by Indian
Railways or IRCTC or their licensees will be 5% without Input Tax Credit (ITC).
33 For Mail/Express trains (All Post-paid catering services), revised GST is applicable with
immediate effect. However, in case of Rajdhani/Shatabdi/Duronto type trains (All Pre-paid catering
services), it shall be made applicable w.e.f 16/04/2018 for advance reservation period.
4. The revised catering apportionment charges for Rajdhani/Shatabdi/Duronto type trains where
catering charges are inbuilt in ticket fare are as under:-
*. | Type of service Catering charges ae Catering charges to |Catering Charges to be
an disbursed to the {GST |be disbursed to the [included in the ticket fare
Service provider (@5% ‘Service provider inclusive of GST @5%
(without GST). (injGn Rs.) (inclusive of GST (in Rs.)
Rs.) @5%) (in Rs)
af IAC/EC
.”:| Motning Tea 12.5 0.63
fo Loe a “Breakfast 81.5 4.08
Lunch/ Dinner 129.5 6.48 |
Evening Tea where dinner is 4} 2.05
served
Evening Tea where dinner is 66.5 3:33
not served
Combo Meal 66.5 3.
PABA”
Morning Tea | FB 0.4 8.4 | 10
Breakfast | 66.5 3.33 69.83 | 70
Lunch/ Dinner गए 112 5.60 117.60 | 120
Evening Tea 40 2.00 42.00 45
Combo Meal | 66.5 3.33 69.83 | 70
______................... आ(फिकणा) (Duronto)
Morning Tea 6.5 0.33 6.83 Fo LO
Breakfast गा 34 1.70 35.70 | 40 |
Lunch/ Dinner | 71 3.55 | 74.55 | 75 |
Evening Tea | 18 0.90 | 18.90 | 20 |
5. In case of Rajdhani/Shatabdi/Duronto type trains where catering charges are part of the ticket
fare and collected by Railways from passengers, the amount of GST as applicable and indicated above
is to be reimbursed to the service providers on submission of proof of deposit of same with the
appropriate Government Authority. However, in case of Mail/Express trains and other static units,
where catering services are provided on payment basis and the above taxes are collected directly from
the passengers through cash memo, money receipts etc., the service providers shall deposit the amount
of GST at the revised rates to the concerned government Authority as per extant GST rules. Zonal
Railways /IRCTC/KRCL shall ensure that the GST collected from the passengers are deposited with
the concerned Government Authorities as per the guidelines /procedures laid down by Ministry of
Finance.
6. In addition to the above, GST on catering services of other premium trains like Tejas, Gatiman,
Shivalik etc. shall be levied @ 5% without ITC. Accordingly, necessary changes in the catering
apportionment charges shall be advised by the Zonal Railways to CRIS.
7. For all such trains where catering charges are i
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