Whether transportation of goods to Railways is exempted from Service Tax

[abhishek pandey]

Honoured Sirs,

Your guidance is required. I have supplied goods to Railways. Whether I am required to pay service tax on transportation expenses. Is it not exempted being service provided to Railways.

[Nitika Aggarwal]

Dear sir,

In respect of the Query being raised by your good-self, i would like to bring your Kind knowledge that Services by way of transportation by rail from one place in India to another is exempted only in respect of the following goods:-

(a) relief materials meant for victims of natural or man-made disasters, calamities, accidents or mishap;

(b) defence or military equipments;

(c) newspaper or magazines registered with the Registry of Newspapers;

(d) railway equipments or materials;

(e) agricultural produce;

(f) milk, salt and food grain including flours, pulses and rice; and

(g) organic manure.

Thus, if any of the aforesaid goods are being transported via rail then only it shall be exempted otherwise not.

For better clarification, i would specifically wanted to know that whether you are taking the services of railways for transportation of goods or services are provided to railways itself.

Regards

Nitika Aggarwal

9999804960

[abhishek pandey]

@Nikita madam, thanks for reply. But my case is different. I have supplied goods i.e. murum, gitti to Railways by way of road transport.

[Ganeshan Kalyani]

In this case, gst is payable under reverse charge .

AI Summary

Service tax exemption for rail transport applies only to specified goods; supplies by road to railways may attract reverse charge tax. Transportation services by rail are exempt from service tax only for a specified list of goods (relief materials, defence equipment, registered newspapers, railway materials, agricultural produce, milk, salt, basic food grains, and organic manure); other rail carriage remains taxable. Deliveries of goods to the railways by road do not benefit from that rail-transport exemption and may attract tax under the reverse charge mechanism where applicable.