Tax rate on railway transportation

Rahul Rai
11 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 11 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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