GST on Railway Passenger Services in place of Service Tax – Restriction of only one booking in one user login session in case of e-ticketing
GST on Railway Passenger service in the place of Service Tax – Railway Board Commercial Circular No. 41/2017
GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)
Commercial Circular No.41 of 2017
No.TC-II/2910/2017/GST/2
New Delhi, dated 23/06/2017
The General Managers,
All Zonal Railways.
SUB: Implementation of Goods & Services Tax (GST) on transportation of passenger by rail.
REF: This office letter No.TC-II/2910/2017/GST/2 dated 09.06.2017
containing detailed approach paper for implementation of Goods &
services Tax (GST).
In continuation of above referred instructions containing approach
paper for implementation of Goods & services Tax (GST), it has been
decided to levy Goods & Services Tax (GST) in place of service tax
including cess on transportation of passengers by rail. The detailed
procedure for levy of GST on transportation of passengers by rail shall
be as under:-
1. Goods and service tax (GST) will be levied on the fare of
passenger services in place of service tax (including cess) on the
following classes :-
(i) AC first class (ii) Executive class (iii) AC-2 tier class (iv)
AC-3 tier class (v) AC chair car class (vi) AC economy class (v) First
class (vi) AC and first classes coaches of special trains/coaches on FTR
(vii) All other type of first class and AC class coaches if any.
2. The rate of GST shall be 5% on total fares as per the logic of application, GST vide Appendix- A.
3. As regards to Duty pass, Privilege pass, any other complimentary
passes which are not reimbursed to Railways etc. and where no money
transaction is involved, GST shall not be levied.
4. On Concessional tickets/Privilege ticket orders (PTOs) tickets
etc., GST shall be levied at the prescribed rate on total actual fare
collected after concession/rebate.
5. The GST amount shall not be rounded of. In case of showing
separate GST amount for CGST and SGST/UTGST in that case also GST amount
shall be separately mentioned upto two decimal place . As regards
rounding off of chargeable fare, after levy of GST on the total fare
charged including Superfast surcharge, reservation fee, etc as
applicable therefore it shall be rounded off as per approved principles.
6. As per provisions of GST, certain facility already available to
passenger shall be withdrawn in AC classes and first class ticket to
implement the GST guidelines:-
(i) In case of combined return journey tickets, separate tickets for
onward journey and return journey tickets may be issued in all cases
whether for UTS tickets or for PRS tickets. However for suburban UTS
tickets for which journey originating/terminating station is within the
same state/same UTS issue of combined return journey ticket over
suburban section shall continue.
(ii) Circular journey tickets shall be discontinued w.e.f 01.07.2017.
(iii) Issue of AC Class tickets from UTS counter shall be discontinued w.e.f. 01.07.2017.
(iv) Issue of cluster tickets from PRS shall be discontinued
w.e.f.01,07.2017. However, issue of cluster ticket in UTS shall
continue.
(v) In any other case if combined tickets are issued except season
tickets the same may be discontinued and only point to point tickets may
be issued in AC classes and First classes as proposed above,
7. In case tickets were booked in advance alongwith service tax for
journeys to commence on or after date of implementation of GST, the
Goods & services Tax difference of fare shall not be collected on
the tickets booked in advance. This shall be applicable on tickets
issued on or after 01.07.2017.
8. In case of Mobile tickets, location of supplier shall be
originating station and mobile tickets shall be issued only to
unregistered users.
9. Commercial inspectors and TIAs should visit all important stations
and ensure that GST are levied on tickets issued as per the GST rules.
Commercial officers should also make surprise checks at the stations and
ensure that GST are levied from date of implementation of GST.
10. All other terms and conditions shall be followed as per approach
paper for implementation of Goods & services Tax (GST) mentioned
above.
11. This issues in consultation with Rates Dtte., Accounts Directorate and Finance (commercial) Directorates.
12. The date of implementation of GST shall be W.E.F. 01.07.2017. Zonal Railways may take suitable action accordingly.
13. CRIS shall ensure necessary changes in the software.
14. Necessary instructions may be issued to all concerned.
15. Wide publicity should be given through different media.
16. Procedure to be followed by zonal Railways is placed at Appendix-B. (2 pages)
(Rohit Kumar)
Deputy Director Passenger Marketing III
Railway Board