Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86. - GST - States - 26/2018

GOVERNMENT OF WEST BENGAL DIRECTORATE OF COMMERCIAL TAXES 14, BELIAGHATA ROAD, KOLKATA-700015 TRADE CIRCULAR No. 26/2018 (Circular No. 30/04/2018-GST) DATED: 17.09.2018 Subject: Clarification on supplies made to the Indian Railways classifiable under any chapter, other than Chapter 86. 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. 1125-F.T. [1/2017 State Tax (Rate)] dated 28thJune, 2017, read with notification No. 1129-F.T. [5/2017-State Tax (Rate)] dated 28thJune, 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. 1125-F.T. [1/2017 State Tax (Rate)] dated 28thJune, 2017 or notification No.1125-F.T. [1/2017 State Tax (Rate)] dated 28th 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 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. 5. This circular shall be deemed to have come into force with effect from 25.01.2018. Sd/- (Smaraki Mahapatra) Commissioner, State Tax, West Bengal Date: 18.09.2018 Memo. 386 CT/PRO 3C/PRO/2018