Railways to get edge post GST, fear fleet owners

Railways to get edge post GST, fear fleet owners

Transporting goods via rail may be a cheaper option than ferrying them by road, post the rollout of the goods and services tax (GST). This is because the railways can claim input tax credit on the 5% GST applicable on the service provided, while fleet owners cannot. According to fleet owners, post roll-out of GST, customers may prefer to transport goods by the railways since it will work out cheaper compared with roadways. Input tax credit that the Indian Railways will claim on the 5% GST applicable on its services will be eventually passed on to the customers. Fleet owners on the other hand will not be able to claim any input tax credit as diesel  one of the main input costs has been kept outside the purview of the new tax law. The raw materials that are needed by fleet owners to provide services to their customers have not been considered by the GST Council; presentations have been made by the transport associations to the officials of both finance and road transport ministry in this regard. Read More…

 

Credit By : The Financial Express

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