Ministry of Railway Clarifies GST on Train Ticket Cancellation Applicable to AC Class Only

The Ministry of Railways has clarified the laws regarding GST on cancelled rail tickets after misunderstanding. According to the Ministry, the regulations or clauses governing the cancellation of train tickets have not changed. According to the statement, travellers will receive a full refund of their ticket purchase price, including all applicable taxes, when a ticket is cancelled.

On social media, word of the 5 percent GST on all train ticket cancellations was widely disseminated. To be clear, government sources have told Deccan Chronicle that there is no GST assessed on the cancellation of non-AC train tickets.

According to reports, non-AC travel tickets would not be subject to a GST fee for cancellation penalties, however AC class tickets are subject to a 5 percent GST tax beginning of July 1, 2017. According to a senior official, when a cancellation is made, 5% is only taken off of the penalty fees, and the GST that was collected on the entire fare will be given back to the consumer.

As per directive from the Ministry of Railways dated September 23, 2017, “the complete amount of GST charged at the time of booking is refunded in full” in cases of ticket cancellations, along with the refund amount required under the Railway Cancellation of Tickets and Refund of Fare Rule.

According to the rule, cancellation fees 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 more than 48 hours before the departure of the train.

A confirmed ticket’s cancellation fees are 25% of the fare, subject to the minimum flat rate indicated in the preceding sentence, if the cancellation occurs within 48 hours and up to 12 hours before the train is scheduled to depart.

50% of the paid fare is subject to the minimum cancellation fees if the cancellation occurs less than 12 hours, up to four hours before the train is scheduled to depart, or sooner if chart preparation occurs.