No GST on Indian Railways Services from July 15, 2024

The Ministry of Finance has exempted the services provided by Indian Railways to General Public. Starting July 15, 2024 services provided by Indian Railways will no longer be subject to Goods and Services Tax (GST).

This change that was announced is designed to lower travel costs for the public and simplify the financial workings of railways.

The GST exemption covers various services like Passenger travel, goods transport and catering are all included. By removing GST, the government set an objective to make train travel cheaper and easy to reach for everyone.

For passengers, this means lower ticket prices across all classes, from sleeper to AC no one is left out. This is mainly important for people with lower incomes who depend upon trains for their daily travel and long-distance trips.

Freight services, which are important for moving goods around the country will also benefit. With low costs, businesses might see lower expenses. This could result in cheaper products for consumers.

Catering services on trains and at stations are included in GST exemption. This should make food and drinks more affordable for travellers which improves their overall journey experience.

This GST relief is part of a larger plan to support Indian Railways. Its goal is to make it a more cost-effective and efficient way to travel. The savings from the exemption can help Indian Railways invest in better infrastructure. Safety and services will also benefit.

The change is expected to have a positive impact on the economy. Cheaper travel and freight costs could increase trade. Tourism will also increase resulting in the growth of the economy.

The public and industry leaders have welcomed this news. Many see it as a helpful step to support the railway sector. This provides comfort to passengers and businesses.

The exemption of Indian Railways services from GST starting July 15, 2024, is a huge move. This aims to make train travel more affordable. It will increase economic activity This change benefits millions of passengers. It will improve freight services. It supports the country’s overall development.

This was decided in the 53rd GST Council meeting held on 22nd June 2024 and CBIC notified the same via Notification No.04/2024-Central Tax (Rate) dated 12.07.2024.

For Official Notification Download PDF Given Below: