In the letter dated November 27, the railway board said they had received communication from the defence authority about the lack of parity in charges across zones.
"Reference has been received from the defence authority stating that different practises are being followed over zonal railways regarding charging in case of military traffic. The matter has been examined," the letter read.
In its letter, the Army had raised concerns regarding difference in rates across zones and charges being levied despite exemption for military traffic.
The railway clarified that the charge was not applicable on military-owned wagons according to the rules.
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The railways made it clear that defence and military equipment are exempt from the GST after concerns were raised over the tax being levied on military traffic by certain zones.
The railway board, however, said neither can the railways raise any debit nor can the defence authority expect a refund for transactions carried out in the past.
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