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Implementation of Goods & Services Tax (GST) on transportation of Parcel traffic (leased or non-leased) by rail

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Implementation of Goods & Services Tax (GST) on transportation of Parcel traffic (leased or non-leased) by rail State wise GSTIN of supplier and state wise registered address of Indian Railways shall be

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

Freight Marketing Circular No. 0& of 2017

No. TC-fi/2046/2017/GST/Parcel New Delhi, dated 24 .06.2017

The General Managers, All Zonal Railways..

SUB: Implementation of Goods & Services Tax (GST) on transportation of Parcel traffic (leased or non-leased) by rail.

REF: This’ office letter no. TC-I/2910/2017/GST/2 dated 09.06.2017 containing detailed approach paper for implementation of Goods & services Tax (GST),

In continuation of above referred instructions containing approach paper for implementation of Goods & services Tax (GST), It has been decided to levy Goods & Services Tax (GST) in place of service tax including Cess on transportation of Parcel traffic (leased or non-leased) by rail. The detailed procedure for levy of GST on transportation of parcel traffic by rail shall be as under:- .

Goods and service tax (GST) will be levied for transportation of all description of parcel traffic (leased or non-leased parcel traffic) and merchandise items (for commercial use) booked as luggage. Luggage traffic i.e personal baggage belonging to the travelling passengers, (Excluding merchandise items for commercial use), shall be exempted from GST. The details of other commodities exempted from GST shall be as under:-

(a). Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(b) Defence of military equipments;

(0) Newspaper or magazines registered with the Registrar of Newspapers;

(d) Railway equipments or materials;

(e) Agricultural produce;

(f) milk, salt and food grain including flours, pulses and rice;

(2) organic manure

2. The rate of GST shall be 5% on total freight as per the logic of application, GST vide’ Annexure- Al,

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3. Goods & Services Tax will be levied on the total freight as reflected in the Parcel Way Bill and for Luggage ticket and /or Money receipt (in case of leased traffic) issued on or after

01.07.2017 and it will be collected at the time of booking and preparation of Parcel Way Bill/Luggage ticket/Money receipt.

4, In case of undercharges or other charges, which are to be collected at the destination station, Goods & Service Tax (GST) at the stipulated percentage shll be collected by the destination railway on such other components also.

To facilitate correct assessment, collection and payment of Goods & Services Tax (GST), the folowing instructions are issued

(1). State wise GSTIN of supplier and state wise registered address of Indian Railways shall be provided separately.

(i). The detailed approach paper which has’ already been issued vide letter no. TC- 11/2910/2017/GST/2 dated 09.06.2017 for implementation of GST may be followed.

iii) Ti

hall be manually written by the parcel clerks in the computerized Parcel Way Bills also which will be generated at PMS locations.

(iv) It may be ensured that not only Railway customers but also all lease holders should pay GST alongwith freight/lumpsum leased freight/haulage charge. Further, where advance payment facility has been permitted they would. be required to pay GST alongwith the freight/lampsum leased freight/haulage charge

(v) It may ensured that proper arrangements are made for up-keep of records from the initial -

stage itself for subsequent auditing by GST authorities.

(vi). Instructions may be communicated to all the concerned staff at all levels regarding the.

relevant provisions of this ACT and they should be made conversant with the various provisions for effective and efficient implementation of the same.

(vil). Each station/Parcel office collecting the GST shall submit a statement showing customer wise details of GST collected during the previous month date-wise and P W Bill-wise with breakup of GST alongwith the station balance sheet. ः

_ (viii) GST as applicable shail be collected alongwith Wagon Registration’ Fee (WRF), where applicable and separately, at the stage of 

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