GST rollout: AC, first class train fares to become expensive after July 1

GST rollout: AC, first class train fares to become expensive after July 1

Soon after the Goods and Services Tax (GST) comes into effect on July 1, there are going to major changes in ticket prices and passengers will have to shell out a little more to travel in AC coaches and first class compartments. This means, from the next month, passengers who travel in first class suburban local trains will have to pay more for their monthly passes. It has to be noted that service tax is levied only on AC and first class fares in the Railways. For the smooth rollout of GST from July 1, the Indian Railways has increased the first class and air-conditioned tickets by 0.5%. Service tax was 4.5% while GST is 5%.

In a bid to take care of the Goods and Service Tax (GST) compliances, the Central and Western Railways is leaving no stone unturned to make the train journey affordable and of benefit to the common man. A senior railway ministry official was quoted by TOI saying that if a passenger purchases a ticket costing Rs 2000, then he/she will have to spend Rs 10 more and buy the same ticket at Rs 2010 from the next month. Read More…

 

Credit By : India

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