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Digital Desk: There have been no changes to the regulations regarding ticket cancellation and refunds, according to the Railways Ministry. The fare and the amount of GST (Goods and Services Tax) charged at the time of booking, according to the ministry, will be fully refunded to the traveller when a ticket is cancelled.

 

The ministry referenced data in accordance with earlier directives released in September 2017.

The ministry clarified the cancellation fees, stating that the Railways would keep this amount (and any relevant GST) in accordance with the return guidelines.

 

The ministry further clarified the rule by stating that it would only apply to tickets purchased in first and business classes and that the GST was being collected on the Finance Ministry's behalf.

 

The Finance Ministry released recommendations on August 3 regarding the application of GST to cancellation fees for confirmed train tickets.

The Indian Railways, the service provider in this matter, explained in the circular that purchasing tickets is a "contract" under which the consumer is promised services by the service provider, in this case, the Indian Railways. The circular said that the cancellation fees for a class of train tickets will be subject to GST at the same rate as that class.

 

Understanding this rule using an example, it would mean that the rate is 5 per cent GST for first-class or AC coaches, while cancellation fee for this category is Rs 240 (per passenger). Therefore, the total cancellation cost will be Rs 252 ( Rs 12 tax + Rs 240) for First Class / AC compartments. However, there is no GST on other categories, including second sleeper class.

 


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