Last updated on June 13th, 2023 at 01:48 pm
GST on Railways
In India, the train is the most preferred mode of transportation used by the majority population of the country. Some of the driving factors behind the popularity of Indian railways are connectivity, affordability, and certainly the continuous advancement in facilities.
Indian Railways provide the service of transportation of passengers under the contract (i.e. confirmed ticket) to the passenger will be considered as supply under GST. The levy/exemption from GST for train tickets will depend on the class of train tickets booked.
GST on Ticket Booking & Cancellation
What is the GST rate levied on the ticket fares of rail/train?
GST @5% will be levied on the total ticket fare if GST is applicable for the class of ticket booked. [SAC – 9964]
Is GST applicable on all types of train tickets?
GST is applicable on the rail/train tickets booked in the First Class or the air-conditioned class (i.e., 1st AC, 2nd AC, 3rd AC, AC Chair Car).
GST is not applicable on the tickets booked in rail in any other classes (i.e., second class or sleeper class, etc.)
Will GST be applicable to the cancellation of all types of train tickets?
NO. GST shall be levied @5% on cancellation charges upon cancellation of reserved tickets of AC & First Class. GST shall not be levied on cancellation of sleeper class or second class reserved tickets.
If you are eligible for a full refund upon cancellation then after retaining the cancellation charges full refund shall be processed.
If you are eligible for a partial refund upon cancellation then after retaining the cancellation charges and partial fare, the remaining partial refund shall be processed.
For example
|
Particulars |
Eligible for a full refund |
Eligible for a partial (50%) refund |
|
Ticket Fare including Rs 50 GST @5% |
1050 | 1050 |
| Cancellation charges Rs 100 (incl of GST) | (100) |
(100) |
|
Refund Amount |
950 [1050 -100] |
425 [1050-525-100] |
Is GST applicable on metro tickets?
GST is not applicable to passengers traveling on the metro train.
Is GST applicable on local train tickets?
GST is applicable on the tickets booked in the 1st class of the local train.
GST is not applicable on the tickets booked in the second class of the local train.
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- 50th GST Council Meeting - 11/07/2023
- GST Compliance Calendar of October 2023 - 01/04/2023
- GST sections amended in Finance Act 2023 - 27/03/2023
Disclaimer: The above content is for general info purpose only and does not constitute professional advice. The author/ website will not be liable for any inaccurate / incomplete information and any reliance you place on the content is strictly at your risk.
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