Clarification on GST Rates for Supplies to Indian Railways
<p><span>In Circular No. 30/4/2018-GST, dated January 25, 2018, the Ministry of Finance, Government of India, addresses the applicable GST rates for supplies made to the Indian Railways. This circular aims to clarify the tax rates for items classified under various chapters, ensuring consistent application of GST.</span></p><h4>Key Highlights:</h4><ol start="1"><li><span><strong>Chapter 86 Classification</strong>: Only goods classified under Chapter 86, when supplied to the railways, attract a GST rate of 5% with no refund of unutilized input tax credit (ITC).</span></li><li><span><strong>Other Chapter Classifications</strong>: Goods classified under any other chapter will attract the general applicable GST rates as specified in the relevant notifications (No. 1/2017-Central Tax (Rate) and No. 2/2017-Central Tax (Rate)), even when supplied to the railways.</span></li><li><span><strong>GST Council's Discussion</strong>: The GST Council, in its 25th meeting on January 18, 2018, recommended issuing this clarification to address concerns and ensure uniform tax treatment across different categories of supplies to the railways.</span></li><li><span><strong>Implementation Guidance</strong>: The circular provides guidance on the correct classification and applicable tax rates, emphasizing the importance of compliance with the specified notifications.</span></li></ol><p><span>This circular plays a crucial role in resolving ambiguities related to the GST rates for supplies to Indian Railways, ensuring a uniform approach and compliance across the country.</span> <a href="https://cms.plasament.com/storage/circularno-30-cgst.pdf">circularno-30-cgst</a><br> </p>