On this apprehension of railway passengers, the Railways has issued a clarification. Railway has said that according to the statement issued on September 23, 2017, in case of cancellation of the ticket, the GST charged at the time of booking the ticket is also refunded along with the value of the ticket as per the Railway Rules.

However, on every cancellation of the ticket, the railway department levies some cancellation charge, which is applicable as per its refund rules. Railways will now also charge GST on this cancellation charge. The Railway Department has said that this GST will be taken as per the instructions of the Ministry of Finance. However, this fee will be applicable only on AC and first class tickets.

What is the cancellation charge on which ticket, according to the existing rules of the railway, if the confirmed ticket is canceled within 48 hours of the departure of the train, then Rs 240 on AC First Class, Rs 200 on AC Tier 2, Rs 180 on AC Tier 3 and Chair Car Rs.120 for sleeper class and Rs.60 for second class ticket is charged as cancellation charge. It is charged on a per passenger basis.

If the ticket is canceled within 12 hours of the departure of the train, then 25% of the ticket fare is charged. If the same confirmed ticket is canceled within 4 hours of the departure of the train, then 50% of the fare can be charged as cancellation charge.

After the preparation of the reservation chart, what are the rules for a general passenger e-ticket cannot be canceled after the chart is prepared. In such a case the user is asked to file TDR online. If users want, they can also track their status through IRCTC. If the ticket is not canceled or TDR is not filed before four hours of the departure of the train, then the passenger will not get any refund.

Apart from this, if your ticket is RAC, then it can be canceled up to 30 minutes before the departure of the train. Otherwise you will not get any refund. If the ticket has been booked in a family or group and some of the passengers have RAC tickets, then they can also be canceled up to 30 minutes before the departure of the train. On this, the passenger with a confirmed ticket will get a full refund.

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Now GST will be applicable

Now according to the new rule, if anyone cancels a confirmed ticket, then he will also have to pay GST on cancellation charges. This will happen because when a service is canceled, then GST is applicable on that too. The same rule will be applicable on ticket cancellation as well. This will increase the ticket cancellation charges even more.

Finance Ministry issued circular

The Tax Research Unit of the Finance Ministry has recently issued a circular regarding this. According to this, the rate at which the customer (rail passenger) had given GST while booking the ticket, on cancellation, he will be charged GST on the cancellation charge at the same rate. 5 per cent GST is levied on booking of rail tickets and now 5 per cent GST will also have to be paid on the cancellation charges. Similarly, the cancellation of the booked room in the hotel will also have to pay GST.

Cancellation charge for train ticket cancellation

In the circular of the Tax Research Unit, the levy of charge for breach of contract has been explained in detail. It states that the booking of train tickets is like a contract in which the service provider promises to provide a service. When the customer breaches this contract i.e. cancels the ticket booking, the service provider is paid a certain amount as cancellation charge. Cancellation charge is a payment made in lieu of breach of contract, hence GST will have to be paid on it.

Know how much it will charge now

If a passenger books a ticket in AC First Class, then he has to pay 5% GST. In such a situation, if he cancels the ticket, then he has to pay a cancellation charge of Rs 240. In such a situation, he will have to pay an additional Rs 12 at the rate of 5% GST on the cancellation fee of Rs 240.

Railway takes charge on cancellation of ticket according to the time. If the confirmed ticket is canceled 48 hours before the departure of the train, then the ticket cancellation charge for AC first class is Rs 240 and for AC 2 tier, Rs 200 is deducted. Whereas, the cancellation charge for AC 3 tier is Rs 180.

understand this too

If you cancel a confirmed ticket within two days to 12 hours from the train’s scheduled departure time, then the cancellation charge is 25 percent. Similarly, for cancellation of tickets from 12 hours to 4 hours in advance, 50% of the ticket is charged.
In such a situation, you will have to pay 5% GST on the cancellation charge. Meaning that half the money of the ticket will also go and 5 percent GST will also be charged on it. If you cancel the ticket within 4 hours, then no refund will be given to you.

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