In a major good news from Indian Railways, starting today passengers will see their ticket fares for travelling in premium expresses like Rajdhani Express, Shatabdi Express, Duronto Express going down. Yes, Indian Railways has cut the ticket prices drastically, giving much relief to travellers. The reason behind this is the tax slab of 5% under Goods and Services Tax (GST), which came into effect from July 2017. With the new change in fare tickets of these express trains would become somewhat more quite affordable for even low-budget customers. 

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Here’s how GST’s 5% tax slab imposed on Indian Railways will help you pay less in the Rajdhani Express, Shatabdi Express, Duronto Express trains:

Ministry of Finance (Department of Revenue) in a notification dated March 31, 2018, clarified that “the applicable GST rate on supply of food and/or drinks by Indian Railways or IRCTC or their licensees, whether in trains or at platforms (static units)y will be 5% without Input Tax Credit (ITC”). Following the announcement, Indian Railways revised the price of catering services across trains. The changes for mail or train were immediately incepted, however the 5% tax rate on catering services in case of Rajdhani Express, Shatabdi Express, Duronto Express type trains have come into effect from April 16 onward, which is today. 

Earlier, a tax rate of 18% was applicable across these trains. Unlike other mail or express trains, the catering charges are part of the ticket fare purchased in case of the premium trains.

The revised catering charges in case of Rajdhani Express and Shatabdi Express which will be included in fare ticket inclusive of GST 5% are as follows: morning tea at Rs 10, breakfast at Rs 70, lunch/dinner at Rs 120, evening tea at Rs 45 and combo meal at Rs 70. 

As for Duronto Express, the morning tea comes at Rs 10, breakfast at Rs 40, lunch/dinner at Rs 75 and evening tea at Rs 20. 

The Indian Railway earlier clarified saying, “In case of   Rajdhani/Shatabdi/Duronto type trains where catering charges are part of the ticket fare and collected by Railways from passengers, the amount of GST as applicable and indicated above is to be reimbursed to the service providers on submission of proof of deposit of same with the appropriate Government Authority.”

Additionally to the above, GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 5% without ITC. 

Zonal Railways will take immediate necessary action for calculating of catering apportionment charges as per the revised GST rates indicated above for various service requirements between different pairs of stations.