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GST Applicability on Goods Transport Services by Rail

GST on Goods Transport Services by Rail
Goods Transport by Rail (Tariff Head)-
Rail Transport of goods falls under tariff (service code) 996512.
Rate of GST and availment
of Input Tax Credit –
1.  Transport of Goods by Rail
Goods sent by Railways in Vessel.
Rates –  The rate is 5% (CGST 2.5% + SGST 2.5%) or IGST @ 5%.
ITC of Input services available, but not for input Goods.
2.  Transport of Goods by Rail in Vessels
Goods Sent Through Vessels within India or from India to Out Side India
Rates –  The rate is 5% (CGST 2.5% + SGST 2.5%) or IGST @ 5%.
ITC of Input services available, but not for input Goods.
3.  Transport of Goods in railway containers by other person
Transport of goods in containers by rail by any person other than Indian Railways.
Rates –  The rate is 12% (CGST 6% + SGST 6%) or IGST @ 12%.
Full ITC Available.
4.  Exemptions
Services by way of transportation by rail or a vessel from one place in India to another of the following goods –
(a) Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
(b) Defence or military equipments;
(c) Newspaper or magazines registered with the Registrar of Newspapers;
(d) Railway equipments or materials;
(e) Agricultural produce; (f) milk, salt and food grain including flours, pulses and rice; and
(g) Organic manure
Question-
Does Goods transport by rail is covered under reverse charge Mechanism under GST Regime?
Ans. –
CBEC has issued a list of specified services , where reverse charge mechanism (RCM) is mandatory applicable. Goods transport by rail is not mentioned in that specified list. So, goods transport by railways is not covered under reverse charge mechanism (RCM).
 
 
 Disclaimer: 
The contents of this document are solely for informational purpose. It does not constitute professional advice or a formal recommendation. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. The author does not accept any liabilities for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon. No part of this document should be distributed or copied without express written permission of the author.

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2 comments

  1. sir the above clerification is appreciated, but sir if railway transport get the services of loading and unloading, trnasportation charges, poter services whether the gst is charged by transporter@5%, transporter issuing the bill in composite or in other manner then what the tax implicaton

  2. sir the above clarification is appreciated, but sir if railway transport get the services of loading and unloading, transportation charges, porter services whether the gst is charged by transporter@5%, transporter issuing the bill in composite or issue in other manner then what the tax implication

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