IRCTC AND GST

[Mr. M. GOVINDARAJAN]

E-ticket

Now it is common to book railway tickets in advance electronically.  On booking of the ticket we may take the hard copy of the ticket that may be shown to the checker at the time of travel.  We will also received SMS immediately on the booking indicating the PNR number, train number, date of travel, Class, seat number.  At the time of travel showing the SMS is enough for travel along with showing of identity card such as PAN  card or aadhar card or voter ID card.

In the advanced technology we almost neglect to take hardcopy of the e-ticket.  Even if we take the hard copy we only notice the train time, seat number, birth allotted, departure time, arrival time only.   No one will read the entire contents in the ticket.

While I was travelling from Madurai to Chennai on 29.11.2017  by Pearl City Express (Train No. 12694)  in second AC, due to time availability I happened to read the entire ticket.  I was anxious about the levy of GST in the train ticket, since railway is also a service provider and covered under the GST regime.  The following particulars are available in the e-tickets-

• Service Accounting Code-

• 996411 – Local land transport services of passengers by railways for distance up to 150 kms.
• 996416 – Sightseeing transportation services by railways for tourist ticket service;
• 996421 – Long distance transport services of passengers through rail network by railways for distance beyond 150 kms.

It is further indicated that in case the ticket has been booked in advance before implementation of GST and the same is cancelled after implementation of GST, refund amount due as per refund shall be refunded to passenger.   However total amount of service change charged at the time of booking shall not be refunded to passenger in cash/shall not be transferred  in the account in which transaction took place in case of e-tickets etc.,  Refund of service tax shall be made only after Ministry of Railways gets refund from the Central Excise Department.  The cancelled ticket shall be treated as credit note for getting refund of service tax amount.

Fare Details

In the said ticket the fare details are given as below-

• Ticket Fare (inclusive of GST ₹ 54.54.) = ₹ 1150/-
• IRCTC Service charge (Inclusive of GST) = ₹ 0/-
• Travel Insurance premium (inclusive of GST) = Rs/.0/-
• Total fare (all inclusive) = ₹ 1150/-

GST details

In the ticket the Indian Railways GST details are indicated as below-

Supplier information

• Invoice No. PS17413798846211 (inclusive of PNR No– PNR No. is 4137988462)
• Address – Indian Railways, New Delhi.
• SAC Code – 996421 (Long distance transport services of passengers through rail network by railways for distance beyond 150 kms. )
• GSTIN – 07AAAGM)289C1ZL

Recipient information

• GSTIN;
• Name;
• Address

(Since I am unregistered person under GST the above information is not there.  All the three columns are left blank)  If any registered person wants to avail input tax credit on this ticket he is to enter all the above details while booking the ticket. 

Taxable Value – ₹ 1095.45

CGST – Rate –

              Amount –

SGST -  Rate –

              Amount –

IGST – Rate – 5%

            Amount – ₹ 54.54

Total tax – ₹ 54.54.

Even though my journey is within the State the Service of booking of e-ticket originates at Delhi and the service recipient (myself) in Tamil Nadu, IGST is levied.

Commercial circular No. 41/2017

Vide Circular No. 41/2017 the Ministry of Railways issued a detailed procedure for levy of GST on transportation of passengers by rail which is as below-

• Goods and Service Tax (GST) will be levied on the fare of passengers in place of service tax (including cess) on the following classes-

• AC I Class;
• Executive Class;
• AC 2- tier class;
• AC 3 – tier class;
• AC Chair car class;
• AC Economy class;
• First class;
• AC and First Class coachesof special train/coaches on FTR;
• All other type of first class and AC class coaches, if any.

• The rate of GST shall be 5% on total fares as per the logic of application, GST Vide Appendix A;
• As regard duty pass, privilege pass, any other complimentary passeswhich are not reimbursed to railways etc., and where no money transaction is involved, GST shall not be levied.
• On concessional tickets/Privilege Ticket Orders (PTO) tickets, etc., GST shall be levied at the prescribed rate on total actual fare collected after concession/rebate.
• The GST amount shall not be rounded off.In case of showing separate amount for CGST and SGST/UTGST in that case also GST amount shall be separately mentioned up to two decimal place.As regards rounding of charging fare, after levy of GST on the total fare charged including Superfast Surcharge, reservation fee etc., as applicable therefore it shall be rounded off as per approved principles.
• As per provisions of GST, certain facility already available to the passenger shall be withdrawn in AC classes and first class ticket to implement the GST Guidelines-

• In case of combined return journey tickets, separate tickets for onward journeys and return journey tickets may be issued in all cases whether for UTS tickets or for PRS tickets. However for suburban UTS tickets for which journey originating/terminating station is within the same State/same UT, issue of combined return journey ticket over suburban section also continue;
• Circular journey tickets shall be discontinued with effect from 01.07.2017.
• Issue of AC class tickets from UTS counter shall be discontinued from 01.07.2017.
• Issue of cluster tickets from PRS shall be discontinued from 01.07.2017.However issue of cluster tickets from UTS will continue.
• In any other case if combined tickets are issued except season ticketsthe same may be discontinued and only point to point tickets may be issued in AC classes and First Classes as proposed above.

• In case tickets were booked in advance along with service tax for journeys to commence on or after the date of implementation of GST, the GST difference of fare shall not be collected on the tickets booked in advance.This shall be applicable on tickets issued on or after 01.07.2017.
• In case of mobile tickets, location of supplier shall be originating station and mobile tickets shall be issued only to unregistered users.
• Commercial Inspectors and TIAs should visit all important stations and ensure that GST is levied on tickets issued as per GST rules.Commercial Officer should also make surprise checks at the stations and ensure that GST is levied from the date of its implementation.
• All other terms and conditions shall be followed as per approach paper for implementation of GST mentioned above.

Logic for GST application (Passenger)

Concepts

1. Place of supply

• In case of registered customer – place of registration of the customer;
• In case of unregistered customer – place of embarkation of journey;
• In case of unregistered customer if place of embarkation of journey is not known – Location of the supplier.

2.0. Location of the supplier is the place of registration of supplier.

• In case of IR, IR shall be registered in every State so the location of the supplier will be State from where ticket or invoice has been issued.

3.0. Application of GST

• Intra State – CGST + SGST/UTGST
• Inter State – IGST.

• If the address of the registered customer and the place from where the ticket or invoice is issued are in the same state it will be intra state
• In case of unregistered customer if the place from where the ticket or invoice is issued are in the same State and the place of embarkation are in the same State or if the place of embarkation is not known, it will be intra State.
• If the address of the registered customer and the place from where the ticket or invoice is issued are in the different state it will be inter state
• In case of unregistered customer if the place from where the ticket or invoice is issued are in the same State and the place of embarkation are in the differentState it will be intra State.

GST on static catering services

The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railway has been examined in consultation of Finance Commercial Dte. of Railway Board and accordingly issued  Commercial circular No. 79 of 2017, dated 01.12.2017  in which the following are advised-

• The chargeable GST on catering services in static catering units / parliament canteen is @ 5% with no Input Tax Credit (ITC).
• The above GST on catering charges through Static units is applicable w.e.f 15.11.2017.
• The rates notified vide Commercial Circular No. 78 of 2012 (which gives revised tariff for tea/coffee, breakfast and standard meals)will remain unchanged after applicability of GST but are now inclusive of GST @5% for static catering units.