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Changes to a Purchased Train Ticket? Pay the following amount of GST (tax) as outlined above.

Any fees associated with changing or cancelling a train ticket will be subject to GST around the same proportion as that for the fare class.

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Many people’s travel needs are met all year long by Indian Railways. The need for train fares rises dramatically over the holiday season.

People frequently purchase tickets far in advance to guarantee a seat. However, a lot of people are compelled to cancel their reservations because of a last-minute emergency or a change in plans.

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When confirmed tickets are cancelled, Indian Railways assesses a cost. A confirmed rail ticket cancellation will be more expensive since it will be subject to the Goods and Services Tax (GST). To a circular released on August 3 by the Tax Research Unit of the Finance Ministry, cancellation of rail tickets or hotel reservations will henceforth be subject to GST.

According to the circular, purchasing a railway ticket constitutes a contract by which the provider guarantees to perform a service.

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The service provider is reimbursed with a little sum, gathered as cancellation charges, when the passenger violates the contract by cancelling a railway ticket. 

According to a circular from the Finance Ministry, the cancellation charge would be subject to GST because it is a payment rather than a breach of the contract.

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A class of train ticket cancellation fees will be subject to GST at around the same rate as that class’s rate of travel.
In contrast, first-class or AC coach tickets are subject to a 5% GST, therefore cancellation fees will also be subject to GST at the same amount.

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48 hours before the departure of the train, Indian Railways charges 240 for cancellations of an AC first category or the AC executive class ticket. Passengers must pay 5% GST when purchasing these tickets.

Following a recent circular from the Finance Ministry, travellers would also be required to spend the same price of GST on termination fees. Therefore, a traveller must pay an additional $12 (5 per cent of 240) toward GST if an AC first-class reservation is cancelled after it has been verified.

When tickets are cancelled 48 hours before departure of the train, the railway levies a cancellation cost of 200 rupees for validated AC 2-tier tickets and 180 rupees for AC 3-tier tickets.

25% of the ticket price is levied as a cancellation fee if the confirmed reservation is cancelled between 48 to 12 hours of the train’s scheduled departure. 50% of the total booking price is charged for confirmed ticket cancellations made between 12 and 4 hours before the scheduled departure time.

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Any such cancellation of a reservation would now be subject to a GST of 5% on the cancellation fees. The cancellation fee for second-class sleeper tickets will not include GST, though.

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