Railway catering services in trains, stations to attract 5% GST

File photo: A passengers sips tea at Ernakulam Junction Railway Station on February 18, 2016.

The Finance Ministry said on Friday that food and drinks supplied by the Indian Railways or the IRCTC in trains, platforms and stations, will attract 5% GST.

The Finance Ministry has written to the Railway Board on March 31 about the 5% rate to remove any doubt or uncertainty in the matter.

This would bring about uniformity in the rate of GST applicable to the supply of food and drinks made available in trains, platforms or stations.

“It has been clarified ... that the GST rate on the 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% without input tax credit,” the statement said.

The Goods and Services Tax (GST), which subsumed over a dozen local levies, was rolled out from July 1, 2017.