Booking of train tickets comes in service in terms of tax, in which the railway gives you service under a contract. GST is charged for this contract or service. Even if you cancel the ticket, you will have to pay the same GST.
GST will have to be paid separately on rail ticket cancellation charge
If you are going to cancel the confirmed train ticket, then wait once. Just read this news. With this you will know how much you are going to lose if you cancel the confirmed ticket. It has been said in some media reports that on canceling a confirmed ticket, you have to pay a cancellation charge, which is taken as a fine. Now according to the new rule, if a person cancels a confirmed ticket, then he will also have to pay GST on the cancellation charge. This will be because when a service is cancelled, GST is applicable on that too. The same rule will apply on ticket cancellation as well. Due to this, the charge of cancellation of tickets will increase even more.
It has been said in the media report that just as the Goods and Services Tax (GST) has to be paid on cancellation of a deal, similarly GST will have to be paid for canceling a confirmed ticket. By the way, the passenger has to pay GST along with the fare at the time of booking the ticket. Similarly, when a confirmed ticket is canceled, GST will have to be paid at the rate at the time of booking. This will have to be added along with the GST cancellation charge.
How much GST will have to be paid
5% GST has to be paid along with the fare at the time of booking the train ticket. When you cancel a confirmed ticket, you will have to pay 5% GST along with the cancellation charge. Similar rules have been made for booking of air tickets and hotels etc. On canceling the hotel booking, you will have to pay GST separately. Another rule states that GST will also have to be paid on late charges of water and electricity bills.
However, GST has to be paid on cancellation charges levied on bookings and ticket cancellations made by hotels and tour operators. The GST rates applicable at the time of booking will have to be paid at the time of cancellation charge. Late payment of service bills like water and electricity will also attract GST. Similarly, by canceling the confirmed train ticket, your pocket will now be more loose than before. The government has also recently made it clear that the concessions given to senior citizens are being abolished because there is an additional burden on the railways. After this, the rules of GST have increased the concern of the passengers.
Why would you have to pay tax?
Booking of train tickets comes in service in terms of tax, in which the railway gives you service under a contract. GST is charged for this contract or service. When you cancel this ticket, it is a breach of contract, that is why it is a rule to charge the same GST from the passenger or customer as was charged at the time of booking. No such cancellation charge is levied on waiting tickets and no GST is to be paid.
What is the confirmed ticket cancellation charge
- If a confirmed ticket is canceled online 48 hours before the scheduled departure of the train, then the cancellation charge for the tickets is-
- 240 rupees will be deducted for AC first class or executive class
- 200 rupees will be deducted for AC two-tier or first class
- Rs 180 will be deducted for AC 3 tier or AC chair car or AC 3 economy class
- 120 rupees will be deducted for sleeper class
- 60 for second class has been fixed