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Taxability of transportation services

Nidhi (Chief Accountant) (3150 Points)

15 September 2020

Transportation of goods by rail is taxable or not under GST

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

Yes, it's taxable under GST Law.

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Nidhi (Chief Accountant) (3150 Points)
Replied 15 September 2020

If I am transporting agriculture products(which is exempt), than also it taxable rail transport

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

No, transportation of agriculture produces by rail is Exempt from GST.

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Nidhi (Chief Accountant) (3150 Points)
Replied 15 September 2020

Ok, means transport of exempt goods is exempt and taxable goods is taxable?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

No, it's not like that.. Transportation of all Goods by rail is taxable Except as mentioned hereinafter,
GST is not applicable on the transport of the following goods by railway:
(a) Relief material for disaster struck areas (food for flood victims etc.)
(b) Defence or military equipment
(c) Newspaper or magazines registered with the Registrar of Newspapers
(d) Railway equipment or materials
(e) Agricultural produce
(f) Milk, salt and food grain including flours, pulses and rice
(g) Organic manure

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Nidhi (Chief Accountant) (3150 Points)
Replied 15 September 2020

Passenger rail is GST applicable or not

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

First class or air-conditioned coach is taxable under GST, whereas class other than the first class or air-conditioned coach are exempt from GST.

Nidhi (Chief Accountant) (3150 Points)
Replied 15 September 2020

Ok, means metro train is liable for GST

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 15 September 2020

No,metro, monorail or tramway and in a class other than the first class or air-conditioned coach are exempt from GST. (Notification No. 12/2017-CT (Rates) and 9/2017-IT (Rates) both dated 28-6-2017, effective from 1-7-2017).

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