Circular No. 30/4/2018 – GST: GST dated 25.01.2018 clarification regarding supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86.

Important Keyword: F.No.354/1/2018-TRU, Circular No. 30/4/2018-GST, Notification No. 1/2017 –Central Tax, Notification No. 5/2017-Central Tax, Notification No.2/2017-Central Tax,

F.No.354/1/2018-TRU
Government of India
Ministry of Finance
Department of Revenue
(Tax Research Unit)
*****

North Block, New Delhi
Dated, 25 January, 2018

Circular No. 30/4/2018 – GST

To

Principal Chief Commissioners/Principal Directors General, Chief Commissioners/Directors General,
Principal Commissioners/Commissioners, All under CBEC.

Madam/Sir,

Subject: Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86 – regarding.

Representations have been received that certain suppliers are making supplies to the railways of items classifiable under any chapter other than chapter 86, charging the GST rate of 5%.

2. The matter has been examined. Vide notification No. 1/2017 –Central Tax (Rate) dated 28^th June, 2017, read with notification No. 5/2017-Central Tax (Rate) dated 28^th June, 2017, goods classifiable under Chapter 86 are subjected to 5% GST rate with no refund of unutilized input tax credit (ITC). Goods classifiable in any other chapter attract the applicable GST, as specified under notification No. 1/2017 –Central Tax (Rate) dated 28^th June, 2017 or notification No.2/2017-Central Tax (Rate) dated 28^th June, 2017.

3. The Goods and Service Tax Council during its 25^th meeting held on 18^th January, 2018, discussed this issue and recorded that a clarification regarding applicable Goods and Service Tax rates on various supplies made to the Indian Railways may be issued.

4. Accordingly, it is hereby clarified that

• only the goods classified under Chapter 86, supplied to the railways attract 5% Goods and Service Tax rate with no refund of unutilised input tax credit and

• other goods [falling in any other chapter], would attract the general applicable GST rates to such goods, under the aforesaid notifications, even if supplied to the railways.

Yours faithfully,

(Mahipal Singh)
Technical Officer (TRU)
Email: mahipal.singh1980@gov.in

Read More: Proper officer under sections 73 and 74 of the Central Goods and Services Tax Act, 2017 and under the Integrated Goods and Services Tax Act, 2017.

Download Pdf: https://taxinformation.cbic.gov.in/