The Central Board of Indirect Taxes and Customs (CBIC) has issued an order clarifying the incidence of GST on catering services provided in trains.
The order states that the catering services provided in trains by Indian Railways or its licensees will be subject to GST at the rate of 5% without input tax credit.
The order also clarifies that the GST on catering services will be levied on the total amount charged for the service, including the cost of food and beverages, and any other charges like service charges, etc.
The order further states that the GST on catering services will be collected by the Indian Railways or its licensees and deposited with the government.
The order also clarifies that the GST on catering services will not be applicable on the food and beverages supplied by the Indian Railways or its licensees to other service providers like airlines, etc.
The order is applicable with effect from January 1, 2018.
The order is expected to bring clarity and uniformity in the application of GST on catering services provided in trains.