Tax rate on railway transportation

Rahul Rai
1 year, 3 months ago

What is the tax rate on transportation services provided using rail? Whether input tax credit is available?

Please specify tax rate applicable to:

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1 Answer

Pulkit Sharma 1 year, 3 months ago

0

Transportation of goods or passenger by rail are taxed at 5% with ITC of input services.

Transportation of goods in a container are taxed at 12% with full ITC.

However following services are exempted from tax:

Service of transportation of passengers, with or without accompanied belongings, by—

Railways in a class other than—
1. First class; or
2. An air-conditioned coach;
Metro, monorail or tramway;
Inland waterways;
Public transport, other than predominantly for tourism purpose, in a vessel between places located in India; and
Metered cabs or auto rickshaws (including E-rickshaws);

Services by way of transportation by rail or a vessel from one place in India to another of the following goods:

Relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;
Defense or military equipment;
Newspaper or magazines registered with the Registrar of Newspapers;
Railway equipment or materials;
Agricultural produce;
Milk, salt and food grain including flours, pulses and rice; and
Organic manure

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