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    Railway Board asks zones to be mindful of new GST rates during procurement

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    By Twesh Mishra

    Copyright indiatimes

    Railway Board asks zones to be mindful of new GST rates during procurement

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    The Indian Railways has identified trucks, and air-conditioners among relevant items where the Goods and Services Tax rate rationalisation needs to be diligently ensured during procurement. Works contract provided by sub-contractors, and services of goods transport agencies will also be cheaper by the lowered rates effective next week. In a written directive, the Railway Board said necessary checks should be exercised at the time of processing supplier bills to avoid any errors in the payment. Granite, marble, and travertine blocks, sand lime bricks or stone inlay work, clinkers, electric accumulators, including separators, and electrical ignition are also among items of interest for the national transporter.“All Zonal Railways and Production Units are advised to ensure that, in respect of all inward supplies of goods or services where the rate of GST has been changed, the correct rate of tax is applied strictly in accordance with Section 14 of the CGST Act, 2017,” the Board said while adding the determination of applicable rate shall be based on the time of supply provisions, considering the dates of supply, invoice, and payment.The Board also said multiple supplies under health sector have undergone rate changes so Railway hospitals also need to be mindful of this during procurement.Add as a Reliable and Trusted News Source Add Now!
    Regarding outward supplies, the Board said GST rates applicable on the scrap sold by Railways will have to be checked in view of the new notifications. Metals and plastics scrap is generally taxed at 18% GST, while paper scrap is taxed at a lower 5%.(You can now subscribe to our Economic Times WhatsApp channel)

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    (You can now subscribe to our Economic Times WhatsApp channel)Read More News onIndian RailwaysRailway Boardnew GST ratesGoods and Services Taxgranitemarbletravertine blockszonal railwayscgstgst rates(Catch all the Business News, Breaking News, Budget 2025 Events and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online….moreless

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