Applicability on Reimbursement to West Centrail Railway(Staff salary)

[Prem Choudhary]

Dear Expert

please advice RCM applicability on reimbursement to Railway towards staff appointed in our railway siding. whethse it is forwards service or RCM ?

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[Shilpi Jain]

indian Railways being Ministry of Railways - would be Central Government and the amount paid to its staff in relation to services received from it would be liable under reverse charge.

AI Summary

Reverse charge mechanism applies to reimbursements to central government staff for services received, creating GST liability on the recipient. Reimbursements paid to staff of the Indian Railways for services received at a private railway siding are treated as consideration for services from a Central Government entity and are liable to GST under the Reverse Charge Mechanism, making the recipient responsible for the tax.