There have been many announcements recently on paying a 5% GST on many food products and some hospital and hotel room services after GST Council’s decision came into action. Now you need to pay 5% Goods and Service Tax on more services as well. Very recently, it has been announced that 5% GST will be applicable on food items purchased from trains and the shops on the railway platforms.
Pay 5% GST On Food Purchased On Train, Platform
The Delhi Appellate Authority for Advance Rulings (AAAR) recently announced that food items bought from trains and station platforms will include a 5% GST. They also added that this GST rate is a mandate for every customer purchasing food items from a railway-licensed caterer or else too. The GST rate is based on the rates of every food product anyone is purchasing.
The AAR specified a few other things as well. The food services that we get on trains by IRCTC in the Rajdhani and Duronto Express trains are known as ‘catering services in train’. This supply of any kind of food and beverages for the passengers from IRCTC is given this name as a train is a medium of transportation. It is not a place to hang out and eat such as restaurants, canteen, food joints, or similar places. In fact, the food and beverages on the express trains and mail trains do not come in interact with any form of service, therefore it is an accurate supply of goods. Hence, a specified GST rate is levied on every item on the basis of their prices.
An Appeal Has Been Filed Against The AAR
In between all these things, M/s Deepak & Co lodged an appeal against the AAR ruling. They had agreements with the Indian Railways to provide food and beverages (cooked/MRP/packed) to the passengers travelling on the Rajdhani, mails, and express trains. Also, the appellant supplies food to the passenger with plazas and stalls in railway stations.
With the new changes, the 2-member bench of Mallika Arya and Ankur Garg shared that the supply of newspapers in trains will be exempt from any GST rates.