In a major good news from Indian Railways, starting today passengers will see their ticket fares for travelling in premium expresses like Rajdhani Express, Shatabdi Express, Duronto Express going down. Yes, Indian Railways has cut the ticket prices drastically, giving much relief to travellers. The reason behind this is the tax slab of 5% under Goods and Services Tax (GST), which came into effect from July 2017. With the new change in fare tickets of these express trains would become somewhat more quite affordable for even low-budget customers.
Here’s how GST’s 5% tax slab imposed on Indian Railways will help you pay less in the Rajdhani Express, Shatabdi Express, Duronto Express trains:
Ministry of Finance (Department of Revenue) in a notification dated March 31, 2018, clarified that “the applicable GST rate on supply of food and/or drinks by Indian Railways or IRCTC or their licensees, whether in trains or at platforms (static units)y will be 5% without Input Tax Credit (ITC”). Following the announcement, Indian Railways revised the price of catering services across trains. The changes for mail or train were immediately incepted, however the 5% tax rate on catering services in case of Rajdhani Express, Shatabdi Express, Duronto Express type trains have come into effect from April 16 onward, which is today. Read More