CBEC Clarification on 5% GST on the ticket cancellation fee,
5 % GST is only applicable on the cancellation of the tickets of AC class which will be subject to penalty, affirmation made by south central railways official by a statement given.
GST on cancelled train tickets is one of the wide spread topics in the news right now. However the government officials has made confirmation to the Deccan Chronical that there is no GST applicable on the cancellation of the non AC train tickets
Main point needed to be notice that, Now there will be no GST applicable on the cancellation charges on tickets of non AC train tickets and the GST @ 5% on cancellation charges on tickets of the AC compartments is in existence since 1st July 2017.
The 5% deduction is only applicable to the cancellation charges, but at the time of booking of ticket GST is collected on whole fare which is returned to the customer, as said by senior government officials.
There is a standard charge for the cancellation of confirmed tickets, for first AC tickets Rs 240 if cancellation is made at least before 48 hours of the scheduled departure time of train. In case of 2nd tier AC or executive class is Rs 200. For 3rd tier AC, AC economy, AC chair car is Rs 120. The cancellation fees is 50% of the fare paid if cancellation are done in between 12 to 4 hours (or at time of the chart preparation) before the scheduled departure time of train .
For details Reference of Circular : Download the Circular