Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86 - regarding. - GST - States - 09/2018

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI DEPARTMENT OF TRADE AND TAXES POLICY (GST) Branch VYAPAR BHAVAN : I.P. ESTATE : DELHI-02 F. No. 3(66)/Policy-GST/2017/1434-40 Dated: 30/01/2018 Circular No. 09/2018-GST (Ref: Central Circular No. 04/2018-GST) Subject: Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86 - regarding. Representations have been received that certain suppliers are making supplies to the railways of items classifiable under any chapter other than chapter 86, charging the GST rate of 5%. 2. The matter has been examined. Vide State Notification No. 1/2017 -State Tax (Rate) dated 30th June, 2017, read with State Notification No. 5/2017- State Tax (Rate) dated 30th June, 2017, goods classifiable under Chapter 86 are subjected to 5% GST rate with no refund of unutilised input tax credit (ITC). Goods classifiable in any other chapter attract the applicable GST, as specified under state notification No. 1/2017 -State Tax (Rate) dated 30th June, 2017 or state notification No. 2/2017-State Tax (Rate) dated 30th June, 2017. 3. The GST Council during its 25 meeting held on 18th January, 2018, discussed this issue and recorded that a clarification regarding applicable GST rates on various supplies made to the Indian Railways may be issued. 4. Accordingly, it is hereby clarified that only the goods classified under Chapter 86, supplied to the railways attract 5% GST rate with no refund of unutilised input tax credit and other goods [falling in any other chapter], would attract the general applicable GST rates to such goods, under the aforesaid notifications, even if supplied to the railways. (H. Rajesh Prasad) Commissioner (GST)