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Applicability of Goods and Service Tax (GST) on Catering Services

Commercial Circular No. 44 of 2017 · 2017-06-24
Historical — likely supersededCircularcatering
Historical — likely superseded. This circular predates 2020 and has probably been replaced. Treat it as a record of what the rule was, not what it is. The official Railway Board PDF always prevails over anything shown here.

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Circular numberCommercial Circular No. 44 of 2017
File numberNo. 2012/TG.HI/631/2
Date2017-06-24
TypeCommercial Circular
Topiccatering
CurrencyHistorical — likely superseded
Official PDFindianrailways.gov.in

Summary

Applicability of Goods and Service Tax (GST) on Catering Services Type of service Catering charges | Amount of GST | Catering Catering Charges

Text of the circular

GOVERNMENT OF INDIA भारत सरकार
MINISTRY OF RAILWAYS रेल मंत्रालय
(RAILWAY BOARD रेलवे बोर्ड)

No. 2012/TG.HI/631/2 New Delhi dated 24.06.2017

The General Managers
All Indian Railways

The CMD/IRCTC
New Delhi
CMD/KRCL,

Navi Mumbai .
(Commercial Circular No. 44 of 2017)

Sub: Applicability of Goods and Service Tax (GST) on Catering Services

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

1. 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 Rajdhani/Shatabdi/Duronto and other 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. The revised catering apportionment charges for Rajdhani/Shatabdi/Duronto trains and other
similar type of Rajdhani trains where catering charges are inbuilt in ticket fare are as under:-
Type of service Catering charges | Amount of GST | Catering Catering Charges
disbursed to the | @18% charges to be to be included in
licensee (without disbursed to the | the ticket fare
GST). licensee inclusive of GST
(inclusive of @18%
GST @18%)
__ ............#ताट a
Morning Tea 12.5 2.25 14.75 | 15
Breakfast 81.5 14.67 96.17 a | oT |
Lunch/ Dinner al 129.5 23.31 152.81 155
Evening Tea where 41 7.38 48.38 50 |
dinner is served | ही
Evening Tea where 66.5 11.97 78.47 PO

dinner is not served i
Combo Meal 66.5 11.97 78.47 | 80 80

i. \o | a

(Y Ps

-2-

PBA —SONON"#"E
Morning Tea | BY 1.44 9.44 | tO |
Breakfast 66.5 11.97 78.47 a | 80 |
Lunch/ Dinner i 112 20.16 132.16 + 135 |
Evening Tea 40 7.2 47.2 50
|
न

Combo Meal 66.5 11.97 78.47
PSE Ouront.) TT st—sSSS (Duronto)

Morning Tea | 6.5 1.17
Breakfast 34 6.12
Lunch/ Dinner 71 12.78

Evening Tea | | 8 3.24
[Eve L

7.67
40.12
83.78

21.24 25 |

4. In case of Rajdhani/Shatabdi/Duronto type trains where catering charges are part of the ticket
fare, amount of GST is to be reimbursed to the service providers on submission of proof of deposit
of the 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., Zonal railways
ARCTC shall ensure that the GST collect from the passenger are deposited with the concerned
Authorities as per the guidelines /procedures laid down by the M/o Finance. To ensure the same
zonal railways shall also obtain monthly proof of compliance of tax deposit by the service provides
as per laid down procedures.

3, In case of other mail/express trains and static unit, the GST amount shall not be rounded off.
In case of showing separate GST amount for CGST and SGST/UTGST in that case also GST
amount shall be separately mentioned upto two decimal place. As regard rounding off of chargeable
amount, after levy of GST on the total amount it shall be rounded off to the nearest rupee.

6. In addition to the above, GST on catering services of other premium trains like Tejas,
Gatiman, Shivalik etc. shall be levied @ 18%. Accordingly, necessary changes in the catering
apportionment charges shall be advised by the Zonal Railways to CRIS.

This issues with the concurrence of Finance Dte. of Railway Board.

Please acknowledge receipt of this letter.
ं “94-817
(Smita Rawat)
Exe. Director (T&C)
Railway Board

No. 2012/TG.IH/631/2 New Delhi dated 24 .06.2017

Copy to: (i) FA&CAOs, All Indian Railways for information
(ii) ADAI/Railways

(iii) EDPM, ED(Rates), ED(C&IS), MD/CRIS, CCM(PMs) en AK tr
AVA
oan

For Financi

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