Tight spot: Ministry of Railways, DFCC on parallel tracks over GST

Ministry of railways, DFCC planning revenue model for latter as current apparatus has put an 18% GST on the corporation

The Ministry of Railways and its undertaking Dedicated Freight Corridor Corporation of India (DFCC) are considering a different revenue model for the latter because its current apparatus has put an 18 per cent goods and services tax (GST) obligation on the corporation, multiple sources said.

The corporation’s consultants have prepared a report and submitted it to the Railway Board.

Under the present revenue model between the ministry and DFCC, the railways pays the public sector undertaking (PSU) for its services of maintaining and operating freight corridors through a track access charge (TAC). It is through this revenue, among other allocations