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Levy of GST exempted on services by way of transportation by rail on relief material

In recent circular, GST council has exempted GST on services provided by the way of transportation by rail from one place to another place in India on specified goods.

Specified goods for attracting NIL GST are:

  • Relief material for victims of natural calamities , disasters, accidents or mishap,
  • Agricultural produce
  • Defence or military equipments
  • Newspapers or magazines registered with registrar or newspaper
  • Milk, Salt and food grain including flours, pulses and rice, organic manure.

GST Exemption has been extended for transportation by rail in containers also of the specified goods.

However, Container Train Operators (CTOs) are mandatory required to declare the name of commodity carrying the container.

In case the container is loaded with mixed commodities i.e the commodities with GST applicable and with Exempt GST, then GST shall be levied @ 5%.

All other commodities except the above specified commodities shall continue to be charged at applicable GST rate i.e. 5%.

GST on other ancillary charges such as Terminal access, Siding, Shunting, Stabling, Punitive charges for overloading etc. will continue to be levied on transportation of exempted commodities in containers by rail.

Centre for Railway Information Systems (CRIS) shall make the changes in the software itself for the implementation of the circular.

Note : The circular shall be applicable from 01.09.2019. (Notification No.12 of 2017- Central Tax (Rate) dated 28.06.2017

Author: Niranjan Reddy

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