Central Tax Circulars

CGST Circular 30/2018

To

Principal Chief Commissioners/Principal Directors General,
Chief Commissioners/Directors General,
Principal Commissioners/Commissioners,
All under CBEC.

Madam/Sir,

Subject: Clarification on supplies made to the Indian Railways classifiable under any chapter, other
than Chapter 86 – regarding.

1) 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. 1/2017 –Central Tax (Rate) dated 28th
June, 2017, read with notification No. 5/2017-Central Tax (Rate) dated 28th 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. 1/2017 –Central Tax (Rate) dated 28th June, 2017 or notification No.2/2017-Central
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.