Quick Summary
Cancellation of confirmed train tickets, too, will now attract GST, on cancellation charges for that particular class of travel, according to a circular issued by the Ministry of Finance on August 3. Why GST on cancellation? The circular - issued by the ministrys Tax Research Unit (TRU), - exp
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FAQ :
No, GST will only be levied on the cancellation of confirmed train tickets for certain classes of travel. Second sleeper class cancellations are exempt.
The Ministry of Finance states that ticket booking is a contract. Cancellation charges compensate the service provider for the breach of contract by the passenger, and as a payment, these charges now attract GST.
The GST rate for cancellation will be the same as the rate applicable when booking seats or berths for that particular class of travel.
For first-class or AC coaches, the GST rate is 5%. If the cancellation fee is ₹240 per passenger and the ticket is cancelled 48 hours or more before departure, the total cancellation cost would be ₹252 (₹12 GST + ₹240 fee).
Yes, there is no GST on cancellations for categories including second sleeper class.
The ₹240 cancellation charge is applicable when the ticket is cancelled 48 hours or more before the scheduled departure of the train.
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