Those who cancel the train ticket conforming to this should act carefully. Because if you cancel a conformed train ticket, you will have to pay Goods and Services Tax (GST) on the cancellation charges. This is known in a circular issued by the Tax Research Unit of the Ministry of Finance. According to the notification, if AC coach or first class ticket is cancelled, 5 percent GST will be applicable on those charges.
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Booking tickets is treated as a contract. The finance ministry said in its notification that the service provider agrees to provide its services to consumers. The Indian Railways has also said that GST will be levied on cancellation of tickets conforming to the Finance Ministry’s guidelines. But this fee is only for first class or AC tickets.
Ticket cancellation charges?
As per current railway rules..If a conformed railway ticket is canceled within 48 hours of train departure.. Rs.240 for AC first class, Rs.200 for AC tier 2, Rs.180 for AC tier 3, Rs.120 for sleeper class, Rs.200 for second class ticket .60 will be charged by Railways as cancellation charges. These charges are passenger based. If the train is canceled within 12 hours of departure, 25 percent will be charged on the ticket. Also, if cancellation is made after 4 hours, Railways will charge 50 percent of the ticket price as cancellation charges.
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