In the monsoon session of the Parliament, the opposition has launched a strong attack on the government on many issues including inflation, GST. In the wake of the ongoing controversy over GST, it has been decided to implement GST on railway food. Passengers will have to pay 5 percent GST on food if they order food on the railway platform or while traveling in the train. Whether you are buying food items from IRCTC Catering or from vendors, GST rate is going to be applicable.
Clearing the confusion in this regard, the Delhi Appellate Authority for Advance Rulings (AAAR) said that if a passenger buys newspapers from the railway platform, he will not have to pay GST. But if any food or drink is purchased in the railway station or train, passengers will have to pay 5 percent GST. AAAR said that since train is a means of transport, it cannot be called a restaurant, eatery, canteen etc. It does not include implementation of passenger services. For this reason, GST will be charged. Meanwhile, Indian Railways has recently abolished the service charge on food. AAAR said GST rates will be levied on different items at their applicable rates. Besides, different GST rates may be applicable depending on the service in the train or on the platform, AAAR said.