The GST regime will impose a 12 per cent tax on container cargo moved by the railways whereas the same container moved by road will attract only 5 per cent GST. In the new tax regime, railways will charge 5 per cent GST on container/logistics companies, including its own Container Corporation of India (Concor) on the fee these companies pay to railways for the haulage. In the existing tax ecosystem, the tax burden on the client in road sector is 4.2 per cent, which will rise to 5 per cent post GST — a marginal rise. For railways, the same will shoot up from the current 5.6 per cent to 12 per cent. Railways has pinned hopes on the container cargo business for future expansion of its footprints in white goods sectors.

Source: Indian Express June 12, 2017 20:48 UTC