Kind reference is invited to your letter No. 2012/TG.III/631/2 dated 01.02.2018requesting therein to clarify the rate of GST applicable to supply of food and drinkin trains.

2. Different GST rates are being applied for mobile and static catering in Indian Railways which is presently leading to a situation whereby the same licensee (selected by Indian Railways/IRCTC) supplying the same food would be subjected to different GST rates depending on whether it is mobile or static catering,as also which variant of mobile catering it is [pre-paid (without option), pre-paid (with option) orpost-paid]. The rate difference is resulting in the same food being supplied at two different rates to the railway passengers, which is anomalous.

3. The passenger is not aware as to theGST rate applicable to the food ordered by him/her. This may also lead to unnecessary litigation and thus further strengthensthe need for uniform application of tax rate in respect of food and drinks in/by Railways.

4. With a view to remove any doubt or uncertainty in the matter and bring uniformity intherate of GST applicable for all kinds of supply of food and drinksmade available in trains, platformsor stations, it is clarified with the approval of GST Implementation Committee,that the GST rate on supply of food and/or drinksby the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms (static units), will be 5% without ITC.
 

Yours Sincerely,

(Parmod Kumar)
OSD (TRU II)
Telephone: 011-23092374
E-mail: parmodkumar.71@gov.in

F.No. 354/03/2018-TRU