Amidst confusions arising with regard to the levy of 5% GST on the penalty amount for cancellation of the train tickets, the South Central Railways confirmed that the levy is applicable only to the AC Classes.
News of 5 percent GST on cancellation of all train tickets was widely being circulated on social media. However, giving clarity, official sources have confirmed to Deccan Chronicle that no GST is levied up on cancellation of non AC railway tickets.
Reportedly, there will be no GST charges levied on penalty for cancellation of Non-AC travel tickets, whereas levying a 5 percent GST on penalty for cancellation of AC class tickets is an existing tariff since July 1, 2017. When the cancelation is done, 5 percent is deducted only on the penalty charges, and the GST which is collected on the whole fare will be returned to the customer, said a senior official.
The railways also gave the standard charges of cancellation fees. If a confirmed ticket is cancelled before 48 hours of scheduled departure of the train, flat cancellation charges will be Rs 240 for First AC, Rs 200 for Executive class or 2 tier AC, Rs 120 for AC 3 tier, AC chair car, AC economy.
Cancellations which are done less than 12 hours and up to 4 hours before the scheduled departure of the train or up to chart preparation, whichever is earlier, will attract a 50 percent of fare paid subject to the minimum charges.
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