GST to be charged on First Mile & Last Mile charges of India Post

25-01/2022-D (Part-1) 

Government of India 

Department of Posts

Mail Operations Division

To

All CPMsG

Sub: GST to be charged on First Mile & Last Mile charges of India Post

This is with reference to letter No. BD/Joint Parcel Product/DLGS/2021-22 dated 04.01.2023 received from APMG, Karnataka Circle seeking the clarification on the rate of GST to be charged for providing of JPP's First & Last Mile services by Department of posts and also requested to clarify whether the GL code mentioned in Para 3 can be continued for making payment of middle mile charges.

2. In this regard, it is submitted that the GST issue is under consideration at Indian Railways, however, at present 5% GST is being charged on Railways & India Post Charges, which is embedded in Parcel Management System of India Railways. Further, GST @ 18% is being charged for the insurance component.

3. In view of the above, it is requested to charge GST @5% on first & last mile charges till the resolution of the issue by Indian Rallways and to follow the provisional accounting procedure issued by PAF wing vide No. PA/CSI/02/119/2021-22 dated 29.03.2022 for accounting.

(Dushyant Mudgal)

Dy. Director General (MO)

Copy to:

Sh. GVL Satya Kumar, Executive Director (SP & I), Railways Board, Room No. 308, Rail Bhawan, New Delhi-110001 for information and necessary action.