GST Rules On Train Ticket Cancellation; Railways Ministry Clarifies

There continues to be discrepancy around GST rules on train ticket cancellation and to clear it the ministry of railways came up with the clarification. The ministry said that there has been implemented no change in GST provisions on train ticket cancellation. And upon cancellation of train ticket, the refund amount together with the GST charged at the time of booking the train ticket shall be refunded in full.

This clarification came as there were reports doing the rounds that GST of 5% shall be levied on cancellation 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 tweeted citing 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 added.

In accordance with the rule, if a confirmed ticket is cancelled more than 48 hours before the train departure then cancellation charge for AC First/Executive class is Rs. 240, for AC 2 Tier or First class it is Rs. 200, Rs. 180 for AC 3 Tier/AC Chair car/AC 3 economy, Rs. 120 for Sleeper Class and Rs 60 for Second Class.

In a case when the confirmed ticket is cancelled within 48 hours and maximum 12 hours before the scheduled departure then cancellation charges shall be 25% of the train ticket fare subject to the minimum flat rate mentioned in the above clause.

Further if the cancellation is made less than 12 hours and up to 4 hours before the train's scheduled departure time then 50% of the fair shall be refunded subject to minimum cancellation levies.

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