GST Impact - Food items prices up in Express trains and Railway Stations
Posted on: 03/Jul/2017 4:01:38 PM
The prices of the food items served in the Railway Stations and Express trains have gone up as an impact of GST implementation. GST is effective from 1st July as a means of uniform taxation throughout the country.
The Department of Railways and related items/services are under the 5% GST slab. Earlier, the tax was at the rate of 4.5%.
So, the fares for the air-conditioned travel and 1st Class travel have gone up slightly. In a similar trend, the food served by IRCTC (Indian Railways Catering and Tourism Corporation) in the Railway Stations and the Express Trains have also gone up.
The Railway officials explained that the train fares for A/c and 1st class travel are under 5% GST slab. So, the fare will be up by a small margin of 0.5% (As the prevailing rate was 4.5%). As an example, Chennai-Delhi A/c 1st class is up by Rs. 25, A/c 2nd class fare is up by Rs. 15, and A/c 3rd class fare is up by Rs. 5.
The food items served in A/c Express trains and in IRCTC restaurants the GST slab is 18%. For non-A/c restaurants, the GST slab is 12%.
A/c 1st Class (food fares)
Tea – Rs. 12.50, GST – Rs. 2.25, and including the contractor’s expenses, the total increase is Rs. 15, Breakfast – Rs. 81.50, GST – 14.67 and including the contractor’s expenses, the total is Rs. 100, Lunch – Rs.155 (Including GST Rs. 23.31), Evening Tea – Rs. 50 (GST – Rs.7.38), and combo food – Rs. 80 (GST – 11.97).
2nd and 3rd class A/c (food fares)
Tea – Rs. 10 (GST – Rs. 1.44), Breakfast Rs. 80 (GST – Rs. 11.97), Lunch/Dinner – Rs. 135 (GST – Rs. 20.16), Evening Tea – Rs. 40 (GST – Rs. 7.20), Combo Food – Rs. 80 (GST – Rs. 11.97).
