Indian Railways looks for ways to dodge proposed GST on Dedicated Freight Corridor payouts
The Indian Railways is looking at options to avoid potential Goods and Services Tax (GST) on payments it makes to its dedicated freight track network, the Dedicated Freight Corridors (DFC), according to an ET report. Tax authorities have signaled an 18% GST on remittances from Indian Railways to the Rs 1.24 lakh crore DFC for usage.These payments take the form of a track access charge (TAC), currently exceeding Rs 7,000 crore annually. This figure is expected to rise with the full 2843-km DFC network becoming operational next fiscal year.Typically, money transfers between different government entities are exempt from GST. However, the Dedicated Freight Corridor Corporation of India Limited (DFCCIL) is registered as a special purpose vehicle (SPV) under the Indian Railways, giving it the s...