Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86. - GST - States - 21/2017-2018-GST

Government of Goa Department of Commercial Taxes Vikrikar Bhavan, Panaji - Goa - 403001 CCT/26-4/2017-2018/5158 Dated: 7th February, 2018 CIRCULAR (No. 21/2017-2018-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 notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30th June, 2017, read with notification No. 38/1/2017-Fin(R C)(5/2017) dated 30th June, 2017, both published in Extraordinary Official Gazette No. 3, Series I No. 13 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 notification No. 38/1/2017-Fin(R C)(1/2017-Rate) dated 30th June, 2017 or notification No. 38/1/2017Fin(R C)(2/2017-Rate) dated 30th June, 2017, both published in Extraordinary Official Gazette No. 3, Series I No. 13 dated 30th June , 2017. 3. The GST Council during its 25th 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 unutilized 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. (Dipak M. Bandekar) Commissioner of State Tax Note : Similar circular is issued under Central Goods and Services Tax Act, 2017 by Tax Research Unit, Dept. of Revenue, Ministry of Finance, GOI vide Circular No. 30/4/2018-GST dated 25th January, 2018.