As the festive season is approaching in India, the central government has issued an important announcement to worry train passengers.
Millions of people are using rail transport every day as it is a long time but low cost transport service. Even if it is a long-distance journey, the train service will be accessible to all.
Although various facilities are being provided by the government to carry out that train transport, it does not fail to make people aware by making some shocking announcements.
As such, a cancellation fee is usually charged if the booked train tickets are canceled after they have been confirmed. Now it has been announced that GST will also be levied on it.
In this regard, in a statement issued by the Ministry of Finance on August 3, “Booking a railway ticket is like an agreement to avail its services.
Even if the ticket is confirmed, cancellation fee has been charged to the IRCTC company providing the train service as a compensation. From now on it will be charged with 5 percent GST.
That means 5% GST along with Rs.240 normally charged if the ticket booked in First Class AC class is canceled before 48 hours of confirmation. 252 will be charged in addition.
Similarly, if it is a second class AC coach ticket, Rs.200+5%, and if it is a third class AC, Rs.180+5% will be added to the cancellation fee. But it is also informed that GST will not be charged on cancellation of 2nd sleeper and seat class ticket.