The finance ministry on Friday said a 5 per cent GST will be levied on food and drinks supplied by the Indian Railways or IRCTC in trains, platforms or stations.
The Finance Ministry has written to the Railway Board on March 31 about the 5 per cent rate to remove any doubt or uncertainty in the matter.
This would bring about uniformity in the rate of GST applicable to supply of food and drinks made available in trains, platforms or stations.
“It has been clarified … that the GST rate on supply of food and drinks by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd or their licensees, whether in trains or at platforms, will be 5 per cent without input tax credit,” the statement said.
The Goods and Services Tax, which subsumed over a dozen local levies, was rolled out from July 1, 2017.
Source: Business Standard