Uniform GST Rate for Food and Supplies in IRCTC: AAR [Read Order]

The Delhi Appellate Authority for Advance Ruling (AAR)comprising Smt. Mallika Arya, Member (Centre), and Shri Ankur Garg, Member (State) have ruled that a uniform GST rate for food and supplies needs to apply in IRCTC.

The applicant M/S Deepak & Co., A-96 engaged in supplying food on board the trains to the passengers traveling on these trains vide the menu approved by the Indian Railways (IRCTC) and also supplies food items to passengers/ public through the food plaza/ food stalls on the railway station.

The appellant has submitted the clarification issued by CBIC vide letter F.No. 354/03/2018-TRU dated 23.03.2018 addressed to Shri Sanjiv Garg, Additional Member (Tourism & Catering), Railway Board, Ministry of Railways, Rail Bhawan, New Delhi wherein it has been clarified that uniformity in the rate of GST applicable for all kinds of supply of food and drinks made available in trains, platforms or stations, and that the GST rate on supply of food and/or drinks by 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.

The authority observed that the aforesaid clarification is squarely applicable to the appellant and ruled that the GST rate on the supply of food and/or drinks by the appellant whether in trains or at platforms (static units), will be 5% without ITC. Further, the supply of newspapers was exempted under relevant notifications of CGST, 2017 SGST, 2017, and the IGST Act, 2017.

Shri Puneet Aggarwal, Advocate, and Ms. Purvi Sinha, Advocate appeared for Personal Hearing.

To Read the full text of the Order CLICK HERE

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