GST on Train Ticket Cancellation: The Ministry of Railways has issued a clarification regarding whether GST is charged on cancellation of train ticket or not.
GST on Train Ticket Cancellation: The debate on whether GST will be applicable on cancellation of train tickets has been going on for a long time and to curb it, the Ministry of Railways has issued a clarification regarding this. While issuing a clarification, the ministry wrote that no change has been made in the rules and proposals of train ticket cancellation. The ministry said that as per the statement issued on 23 September 2017, the GST charged at the time of booking the train ticket is refunded to the passenger at the time of cancellation of the train ticket. The ministry said that the GST charged at the time of booking is also refunded along with the value of the ticket.
Why Railway Ministry issued clarification
Let us tell you that recently some reports came out, in which it was told that 5 percent GST charge will be charged on cancellation of AC class train ticket. Let us inform that the news agency ANI made a tweet while tweeting the Ministry of Railways and told that the Ministry has issued a clarification on this GST charge.
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: Ministry of Railways
— ANI (@ANI) August 29, 2022
However, on every ticket canceled, the Railway Department levies some cancellation charge, which is applicable as per its refund rules. Railways will still charge GST on this cancellation charge. According to the Railway Department, this GST is taken as per the instructions of the Ministry of Finance. However, this GST charge is applicable only on AC and first class tickets.
How much cancellation charge on which ticket
According to the cancellation rules of the Railways, a confirmed ticket is canceled within 48 hours of the departure of the train. The cancellation charges are Rs 240 on AC First Class, Rs 200 on AC Tier 2, Rs 180 for AC Tier 3 and Chair Car, Rs 120 for Sleeper Class and Rs 60 for Second Class tickets.
If the ticket is canceled within 12 hours of the departure of the train, then 25% of the ticket fare is charged. Whereas, if the ticket is canceled within 4 hours of the departure of the train, then 50 percent cancellation charge is collected.
