Exemptions granted from the levy of GST in respect of Passengers travelling in Second class, Metro, Sleeper Class.
Exemption from levy of GST granted in respect of Transportation by Rail of Agricultural Produce, relief materials, milk, salt, food grain including flours, pulses and rice, railway equipment and materials, defence and military equipments,
Catering charges of Standard Menu Items in Mail/Express trains & at static units on stations will not change even after 1st July,2017
Catering charges of Rail Neer will also remain unchanged w.e.f 1st July,2017
Ministry of Railways is fully geared for the roll out of GST w.e.f. 1st July, 2017.The Indian Railway is the national carrier and undertakes billions of transactions annually for transportation of passengers and goods. A mammoth exercise has been undertaken to modify the ERP system of IR for issue of Passenger Tickets and Freight Invoices to capture GST related details. Similar exercise has been undertaken for non computerised services like way leave charges, parcels etc. Thus on 1st July 2017, all Railway tickets and invoices issued will be GST compliant.
Railways are conscious of the need to minimize burden on our passengers. GST is restricted to 5% (in place of service tax of 4.5% levied earlier i.e. an increase of only 0.5%) for passengers travelling by rail only in First class and air-conditioned coaches. Similarly, GST on Transport of goods by rail will be 5% (in place of service tax of 4.5% levied earlier i.e. an increase of only 0.5%) with exemption for essential goods like Milk and agriculture produce.
Given the public utility service rendered by Ministry of Railways, some exemptions and relief in the transportation of passenger, catering & Goods services have been given which are mentioned briefly below:
a) Exemptions have been granted from the levy of GST in respect of Passengers travelling in Second class, Metro, Sleeper Class, Transportation by Rail of Agricultural Produce, relief materials, milk, salt, food grain including flours, pulses and rice, railway equipment and materials, defence and military equipments, etc.
b) Exemptions have been granted in respect of
Services of leasing of assets (rolling stock assets including wagons, coaches, locos) by Indian Railways Finance Corporation to Indian Railways ;
Inter-state movement of trains between stations/ workshops/ sheds/ depots, etc., for the purpose of :
(1) Carrying goods or passengers or both; or
(2) For repairs and maintenance;
Ministry of Railway has initiated process of Registration in each State/UT. Provisional GSTIN numbers of Ministry of Railways in each State/UT are already notified. In each State/UT, General Manager of a Zonal Railway has been nominated as the Principal Officer for taking care of GST compliance;
A series of detailed instructions have been issued to all Zonal Railways and Production Units to ensure full compliance with GST, and several workshops were organized for dissemination of rules, procedures and training of officers and staff. The entire instruction chain has been made available at website of MoR at http://www.indianrailways.gov.in/railwayboard/view_section.jsp?lang=0&id=0,1,304,366,498,1856
For off-line transaction, an utility has been created by Railways ERP manager, Centre for Rail Information System, to capture the transaction and facilitate submission of periodical returns in the GSTN portal.
The Railways engaged consultants to guide the railways for transitional strategy and impact analysis.
A GST Suvidha Provider is also being engaged to enable transmission of data of millions of Railway Transactions on to the GSTN and for submission of GST Returns thereof.
CRIS, the IT arm of Indian Railways has been geared up to make suitable software modifications in respect of transportation of freight & passengers. Other softwares relating to accounts and stores are also being modified.