GST charge on train ticket cancellation: Ministry of Railways issues clarification - details
GST charge on train ticket cancellation: The Ministry of Railways issued a clarification in the wake of reports claiming that a GST of 5 per cent will be charged for cancellations of AC class train tickets.
GST charge on train ticket cancellation: Amid confusion over the rules on GST on train ticket cancellation, the Ministry of Railways has issued a clarification. The Ministry said there has been no change in the rules or provisions regarding the train ticket cancellation. It said that the refund amount when the ticket is cancelled along with the total GST charged at the time of booking the train ticket is refunded in full to the passengers.
The clarification was issued in the wake of reports claiming that a GST of 5 per cent will be charged for cancellations of AC class train tickets.
"As per instruction issued dated Sept 23, 2017, in case of cancellation of tickets, refund amount due as per Railway Cancellation of tickets and Refund of Fare Rule along with the total amount of GST charged at the time of booking is refunded in full," news agency ANI said in a Tweet quoting Ministry of Railways.
"However, cancellation/clerkage charge applicable as per Refund rule & GST amount on cancellation/clerkage charge is retained by Railways. This is applicable only in AC & 1st class. GST is collected on behalf of the Finance Ministry. No change in rules/provision," the national transporter said.
As per the rule, if a confirmed ticket is cancelled more than 48 hours before the departure of the train, cancellation charges of Rs 240 for AC First Class/Executive Class, Rs 200 for AC 2 Tier/First Class, Rs 180 for AC 3 Tier/AC Chair car/ AC 3 Economy, Rs 120 for Sleeper Class and Rs 60 for Second Class are applicable.
If a confirmed ticket is cancelled within 48 hours and up to 12 hours before the scheduled departure of the train, cancellation charges shall be 25% of the fare subject to the minimum flat rate mentioned in the above clause.
Less than 12 hours and up to four hours before the scheduled departure of the train up to chart preparation which is earlier, 50% of the fare paid is subject to the minimum cancellation charges.
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