Levy of Goods & Services Tax (GST) on transportation of Goods by Rail

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Summary

Levy of Goods & Services Tax (GST) on transportation of Goods by Rail transportation of goods (such as: railway material or equipment) from one zone/division

Text of the circular

Corrigendum No.02 to Rates Circular No.19 of 2017

GOVERNMENT OF INDIA भारत सरकार
MINISTRY OF RAILWAYS रेल मंत्रालय

(RAILWAY BOARD रेलवे बोर्ड )
No.TCR/1078/2021/GST/3371933 Dated: 08.10.2024
महाप्रबंधक,
सभी क्षेत्रीय रेलवे

Sub: Levy of Goods & Services Tax (GST) on transportation of Goods by Rail.
Ref:

i. Rates Circular No.19 of 2017 and corrigendum thereto.
ii. GST Circular No. 06 of 2024 from Accounts Directorate of Railway Board.

Reference above (ii), CBIC has issued notification/circular regarding exemptions
granted on railway transactions in compliance to the recommendations of 53rd GST
Council meeting held on 22nd June 2024. It has been notified that services of
transportation of goods (such as: railway material or equipment) from one zone/division
of Indian Railways to same or another zone/division(s) are exempt from GST w.e-f.
15.07.2024.

2. Hence GST applicable @5% on rail transportation charges on transportation of
railway equipment and material by goods train, Passenger/Mixed/Parcel trains (refer i
above) will qualify for exemption on the transportation service rendered by an Indian
Railway unit to another Indian Railway unit from 15.07.2024 provided the following
conditions are met:

i, The supplier of the transportation service should be a zone/division/unit of Indian
Railways.
ii. The recipient of the transportation service should be a zone/division/unit of Indian
Railways.
iii. Transportation can be of any goods which includes railway material or
equipment.

Illustration: /f Zone A carries, by rail, any goods which may include railway material
and equipment and the recipient of such transportation service of goods is Zone B, the
transport service/freight charged for carrying such material or equipment is exempted
from GST.

3. Accordingly, Corrigendum No.01 to Rates Circular No.19 of 2017 stands
withdrawn.
4. All other details of the Rates Circular No.19 of 2017 shall continue to apply
unchanged.
Rail Bhawan, Raisina Road New Delhi-110001 Page 1 of 2

Corrigendum No.02 to Rates Circular No.19 of 2017

5. This issues in consultation with the Accounts Directorate and Finance Commercial

Directorate of Ministry of Railways.

foe आनंद)
संयुक्त निदेशक, वाणिज्य दर
रेलवे बॉ

Related circulars

• Related: No. TCR/1078/2022/GST/3399822
• Related: No.TCR/1078/2020/08/3321173

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